Critical Comparison: ReNew Energy Global (NASDAQ:RNW) vs. Nextera Energy Partners (NYSE:NEP)

ReNew Energy Global (NASDAQ:RNW) and Nextera Energy Partners (NYSE:NEP) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ReNew Energy Global and Nextera Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	1	1	0	2.50
Nextera Energy Partners	2	0	0	0	1.00

ReNew Energy Global presently has a consensus price target of $7.50, suggesting a potential upside of 22.75%. Nextera Energy Partners has a consensus price target of $10.00, suggesting a potential upside of 0.00%. Given ReNew Energy Global’s stronger consensus rating and higher probable upside, analysts clearly believe ReNew Energy Global is more favorable than Nextera Energy Partners.

Insider and Institutional Ownership

43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 66.0% of Nextera Energy Partners shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by insiders. Comparatively, 0.1% of Nextera Energy Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares ReNew Energy Global and Nextera Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ReNew Energy Global	2.17%	1.75%	0.24%
Nextera Energy Partners	-0.73%	1.34%	0.85%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReNew Energy Global	$86.14 billion	0.03	$41.00 million	$0.05	122.20
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A

ReNew Energy Global has higher revenue and earnings than Nextera Energy Partners. Nextera Energy Partners 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.

Volatility and Risk

ReNew Energy Global has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Nextera Energy Partners has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Summary

ReNew Energy Global beats Nextera Energy Partners on 10 of the 13 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 Nextera Energy Partners

NextEra Energy Partners LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.