Contrasting Drax Group (OTCMKTS:DRXGF) and ReNew Energy Global (NASDAQ:RNW)

Drax Group (OTCMKTS:DRXGF) and ReNew Energy Global (NASDAQ:RNW) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Drax Group and ReNew Energy Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drax Group	0	0	0	0	0.00
ReNew Energy Global	0	3	0	0	2.00

ReNew Energy Global has a consensus target price of $6.39, suggesting a potential upside of 2.73%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts plainly believe ReNew Energy Global is more favorable than Drax Group.

Institutional and Insider Ownership

74.8% of Drax Group shares are owned by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned 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.

Earnings & Valuation

This table compares Drax Group and ReNew Energy Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drax Group	N/A	N/A	N/A	($0.30)	-33.07
ReNew Energy Global	$1.60 billion	1.41	$111.00 million	$0.31	20.06

ReNew Energy Global has higher revenue and earnings than Drax Group. Drax Group 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.

Profitability

This table compares Drax Group and ReNew Energy Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drax Group	N/A	N/A	N/A
ReNew Energy Global	7.18%	7.57%	1.05%

Summary

ReNew Energy Global beats Drax Group on 9 of the 10 factors compared between the two stocks.

About Drax Group

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland. It also owns and operates Daldowie fuel plant that processes sludge, a plant that converts it into dry low-odour fuel pellets. In addition, the company manufactures and sells compressed wood pellets; and supplies renewable electricity. Drax Group plc was incorporated in 2005 and is based in Selby, the United Kingdom.

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.