Contrasting Yankuang Energy Group (OTCMKTS:YZCAY) & Clearway Energy (NYSE:CWEN)

Yankuang Energy Group (OTCMKTS:YZCAY) and Clearway Energy (NYSE:CWEN) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Profitability

This table compares Yankuang Energy Group and Clearway Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yankuang Energy Group	N/A	N/A	N/A
Clearway Energy	-5.64%	-1.66%	-0.55%

Analyst Ratings

This is a summary of current recommendations and price targets for Yankuang Energy Group and Clearway Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yankuang Energy Group	0	1	0	0	2.00
Clearway Energy	1	0	7	2	3.00

Clearway Energy has a consensus target price of $42.22, indicating a potential upside of 26.22%. Given Clearway Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Clearway Energy is more favorable than Yankuang Energy Group.

Insider and Institutional Ownership

84.5% of Clearway Energy shares are held by institutional investors. 0.5% of Clearway Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Yankuang Energy Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Yankuang Energy Group and Clearway Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yankuang Energy Group	$18.55 billion	0.73	$1.19 billion	$1.78	7.83
Clearway Energy	$1.67 billion	4.12	$169.00 million	($0.82)	-40.79

Yankuang Energy Group has higher revenue and earnings than Clearway Energy. Clearway Energy is trading at a lower price-to-earnings ratio than Yankuang Energy Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Yankuang Energy Group pays an annual dividend of $0.42 per share and has a dividend yield of 3.0%. Clearway Energy pays an annual dividend of $1.93 per share and has a dividend yield of 5.8%. Yankuang Energy Group pays out 23.6% of its earnings in the form of a dividend. Clearway Energy pays out -235.4% 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. Clearway Energy has raised its dividend for 2 consecutive years. Clearway Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Clearway Energy beats Yankuang Energy Group on 11 of the 18 factors compared between the two stocks.

About Yankuang Energy Group

Yankuang Energy Group Company Limited is a China-based energy and mining company engaged primarily in coal mining, processing and sales. Its operations also include coal chemicals, power generation, railway and port logistics, and mining equipment manufacturing. The company was formerly known as Yanzhou Coal Mining Company and adopted the Yankuang Energy name in 2022. Its business has expanded beyond its roots in Shandong Province to include coal and energy operations in other parts of China and Australia, including through its investment in Yancoal Australia.

About Clearway Energy

Clearway Energy, Inc. owns and operates electricity-generation facilities in the United States. Its portfolio includes renewable energy assets, primarily wind and solar, as well as energy storage and conventional power-generation and thermal infrastructure. The company sells electricity and related services to utilities and other customers, often through long-term contractual arrangements. Its facilities are located across multiple U.S. regions. Clearway Energy was formerly known as NRG Yield, Inc. and adopted its current name in 2018.