ReNew Energy Global (NASDAQ:RNW – Get Free Report) and AES (NYSE:AES – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.
Risk & Volatility
ReNew Energy Global has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, AES has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Profitability
This table compares ReNew Energy Global and AES’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ReNew Energy Global | 7.24% | 7.71% | 1.07% |
| AES | 14.30% | 20.69% | 3.62% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ReNew Energy Global | $1.60 billion | 1.55 | $105.00 million | $0.32 | 21.39 |
| AES | $12.23 billion | 0.87 | $910.00 million | $2.62 | 5.67 |
AES has higher revenue and earnings than ReNew Energy Global. AES is trading at a lower price-to-earnings ratio than ReNew Energy Global, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 93.1% of AES shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by insiders. Comparatively, 0.8% of AES shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for ReNew Energy Global and AES, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ReNew Energy Global | 0 | 4 | 0 | 0 | 2.00 |
| AES | 0 | 8 | 0 | 0 | 2.00 |
ReNew Energy Global presently has a consensus price target of $6.39, suggesting a potential downside of 6.65%. AES has a consensus price target of $15.71, suggesting a potential upside of 5.71%. Given AES’s higher possible upside, analysts plainly believe AES is more favorable than ReNew Energy Global.
Summary
AES beats ReNew Energy Global on 8 of the 12 factors compared between the two stocks.
About ReNew Energy Global
ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.
About AES
The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
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