Brookfield Renewable Partners (NYSE:BEP) and Azure Power Global (NYSE:AZRE) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
54.0% of Brookfield Renewable Partners shares are owned by institutional investors. Comparatively, 51.6% of Azure Power Global shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Brookfield Renewable Partners has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Azure Power Global has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
This table compares Brookfield Renewable Partners and Azure Power Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Renewable Partners||9.16%||1.80%||0.85%|
|Azure Power Global||1.67%||1.97%||0.41%|
Earnings & Valuation
This table compares Brookfield Renewable Partners and Azure Power Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Renewable Partners||$2.98 billion||2.16||$62.00 million||$0.13||276.85|
|Azure Power Global||$143.52 million||2.92||$1.13 million||$0.13||78.46|
Brookfield Renewable Partners has higher revenue and earnings than Azure Power Global. Azure Power Global is trading at a lower price-to-earnings ratio than Brookfield Renewable Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Brookfield Renewable Partners and Azure Power Global, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Renewable Partners||1||3||2||0||2.17|
|Azure Power Global||0||1||4||0||2.80|
Brookfield Renewable Partners currently has a consensus target price of $39.17, indicating a potential upside of 8.83%. Azure Power Global has a consensus target price of $20.33, indicating a potential upside of 99.35%. Given Azure Power Global’s stronger consensus rating and higher probable upside, analysts clearly believe Azure Power Global is more favorable than Brookfield Renewable Partners.
Brookfield Renewable Partners pays an annual dividend of $2.06 per share and has a dividend yield of 5.7%. Azure Power Global does not pay a dividend. Brookfield Renewable Partners pays out 1,584.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Renewable Partners has raised its dividend for 5 consecutive years.
Brookfield Renewable Partners beats Azure Power Global on 8 of the 15 factors compared between the two stocks.
About Brookfield Renewable Partners
Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The company generates electricity through hydro, wind, solar, cogeneration, and biomass sources. Its portfolio consists of approximately 17,400 megawatts of installed capacity. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Hamilton, Bermuda.
About Azure Power Global
Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.
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