Financial Survey: China Resources Power (OTCMKTS:CRPJY) & CMS Energy (NYSE:CMS)

China Resources Power (OTCMKTS:CRPJY) and CMS Energy (NYSE:CMS) are both large-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for China Resources Power and CMS Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Power	1	0	1	0	2.00
CMS Energy	0	6	8	0	2.57

CMS Energy has a consensus target price of $79.08, indicating a potential upside of 3.21%. Given CMS Energy’s stronger consensus rating and higher probable upside, analysts clearly believe CMS Energy is more favorable than China Resources Power.

Earnings and Valuation

This table compares China Resources Power and CMS Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Power	$13.49 billion	0.91	$1.84 billion	N/A	N/A
CMS Energy	$8.54 billion	2.75	$1.07 billion	$3.53	21.71

China Resources Power has higher revenue and earnings than CMS Energy.

Institutional & Insider Ownership

93.6% of CMS Energy shares are held by institutional investors. 0.4% of CMS Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

China Resources Power pays an annual dividend of $1.23 per share and has a dividend yield of 3.5%. CMS Energy pays an annual dividend of $2.28 per share and has a dividend yield of 3.0%. CMS Energy pays out 64.6% of its earnings in the form of a dividend. CMS Energy has raised its dividend for 3 consecutive years.

Profitability

This table compares China Resources Power and CMS Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Resources Power	N/A	N/A	N/A
CMS Energy	12.54%	12.09%	2.87%

Risk and Volatility

China Resources Power has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, CMS Energy has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Summary

CMS Energy beats China Resources Power on 10 of the 15 factors compared between the two stocks.

About China Resources Power

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects. As of December 31, 2022, the company had 42 coal-fired power plants, 159 wind farms, 38 photovoltaic power plants, 2 hydroelectric plants, and 5 gas-fired plants with total attributable operational generation capacity of 52,581 MW. It also engages in coal mining and marketing activities; and undertakes combined generation of heat and power, coal-electricity integration, and other projects. In addition, the company is involved in the distribution of energy, power sale, intelligent energy, coal mining, and other areas; and distribution network construction and operation, distributed energy resource, and other businesses. The company was incorporated in 2001 and is based in Wan Chai, Hong Kong. China Resources Power Holdings Company Limited operates as a subsidiary of CRH (Power) Limited.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.