Head-To-Head Contrast: Brookfield Renewable (NYSE:BEPC) & Texas Pacific Land (NYSE:TPL)

Brookfield Renewable (NYSE:BEPC) and Texas Pacific Land (NYSE:TPL) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Risk and Volatility

Brookfield Renewable has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Texas Pacific Land has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Valuation and Earnings

This table compares Brookfield Renewable and Texas Pacific Land”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$3.73 billion	1.68	-$2.34 billion	($0.89)	-48.66
Texas Pacific Land	$705.82 million	42.97	$453.96 million	$6.90	63.75

Texas Pacific Land has lower revenue, but higher earnings than Brookfield Renewable. Brookfield Renewable is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 59.9% of Texas Pacific Land shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Brookfield Renewable and Texas Pacific Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-62.07%	-21.54%	-5.01%
Texas Pacific Land	61.68%	38.15%	34.45%

Dividends

Brookfield Renewable pays an annual dividend of $1.56 per share and has a dividend yield of 3.6%. Texas Pacific Land pays an annual dividend of $2.13 per share and has a dividend yield of 0.5%. Brookfield Renewable pays out -175.3% of its earnings in the form of a dividend. Texas Pacific Land pays out 30.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brookfield Renewable has increased its dividend for 1 consecutive years and Texas Pacific Land has increased its dividend for 3 consecutive years. Brookfield Renewable is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Brookfield Renewable and Texas Pacific Land, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	1	1	3	0	2.40
Texas Pacific Land	1	2	1	0	2.00

Brookfield Renewable presently has a consensus target price of $40.00, suggesting a potential downside of 7.63%. Texas Pacific Land has a consensus target price of $350.00, suggesting a potential downside of 20.43%. Given Brookfield Renewable’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brookfield Renewable is more favorable than Texas Pacific Land.

Summary

Texas Pacific Land beats Brookfield Renewable on 9 of the 17 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.