ELPC vs CIG

For growth investors, Companhia Paranaense de Energia (ELPC) is the stronger pick with 13.

0% revenue growth year-over-year, versus 5. 3% for Companhia Energética de Minas Gerais (CIG). Companhia Paranaense de Energia (ELPC) offers the better valuation at 4. 3x trailing P/E (3. 1x forward), making it the more compelling value choice. Analysts rate Companhia Energética de Minas Gerais (CIG) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Companhia Paranaense de Energia (ELPC) is the cheapest at 4.

3x versus Companhia Energética de Minas Gerais at 7. 0x. On forward P/E, Companhia Energética de Minas Gerais is actually cheaper at 1. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Companhia Energética de Minas Gerais wins at 0. 11x versus Companhia Paranaense de Energia's 0. 12x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Companhia Energética de Minas Gerais (CIG) delivered a total return of +137.

5%, compared to +72. 7% for Companhia Paranaense de Energia (ELPC). Over 10 years, the gap is even starker: CIG returned +315. 8% versus ELPC's +72. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Companhia Energética de Minas Gerais (CIG) is the lower-risk stock at 0.

72β versus Companhia Paranaense de Energia's 0. 91β — meaning ELPC is approximately 27% more volatile than CIG relative to the S&P 500. On balance sheet safety, Companhia Energética de Minas Gerais (CIG) carries a lower debt/equity ratio of 70% versus 88% for Companhia Paranaense de Energia — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Companhia Paranaense de Energia (ELPC) is pulling ahead at 13.

0% versus 5. 3% for Companhia Energética de Minas Gerais (CIG). On earnings-per-share growth, the picture is similar: Companhia Paranaense de Energia grew EPS -17. 6% year-over-year, compared to -31. 7% for Companhia Energética de Minas Gerais. Over a 3-year CAGR, ELPC leads at 7. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Companhia Energética de Minas Gerais (CIG) is the more profitable company, earning 11.

5% net margin versus 10. 3% for Companhia Paranaense de Energia — meaning it keeps 11. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ELPC leads at 17. 6% versus 14. 1% for CIG. At the gross margin level — before operating expenses — ELPC leads at 21. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Companhia Energética de Minas Gerais (CIG) is the more undervalued stock at a PEG of 0. 11x versus Companhia Paranaense de Energia's 0. 12x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Companhia Energética de Minas Gerais (CIG) trades at 1. 9x forward P/E versus 3. 1x for Companhia Paranaense de Energia — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CIG: -12. 1% to $2. 10.

All stocks in this comparison pay dividends.

Companhia Paranaense de Energia (ELPC) offers the highest yield at 21. 8%, versus 11. 5% for Companhia Energética de Minas Gerais (CIG).

For long-horizon retirement investors, Companhia Energética de Minas Gerais (CIG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

72), 11. 5% yield, +315. 8% 10Y return). Both have compounded well over 10 years (CIG: +315. 8%, ELPC: +72. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.