Critical Analysis: Clearway Energy (NYSE:CWEN) and Alternus Clean Energy (OTCMKTS:ALCED)

Alternus Clean Energy (OTCMKTS:ALCEDGet Free Report) and Clearway Energy (NYSE:CWENGet Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

84.5% of Clearway Energy shares are owned by institutional investors. 32.4% of Alternus Clean Energy shares are owned by insiders. Comparatively, 0.5% of Clearway Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Alternus Clean Energy and Clearway Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alternus Clean Energy 0 0 0 0 0.00
Clearway Energy 0 2 5 2 3.00

Clearway Energy has a consensus target price of $44.50, suggesting a potential upside of 39.59%. Given Clearway Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Clearway Energy is more favorable than Alternus Clean Energy.

Volatility and Risk

Alternus Clean Energy has a beta of -27.07, suggesting that its stock price is 2,807% less volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alternus Clean Energy and Clearway Energy”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alternus Clean Energy $310,000.00 N/A -$6.49 million ($41.06) -0.00
Clearway Energy $1.43 billion 4.58 $169.00 million $0.76 41.95

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

Profitability

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

Net Margins Return on Equity Return on Assets
Alternus Clean Energy N/A N/A -23.45%
Clearway Energy 5.78% 1.60% 0.55%

Summary

Clearway Energy beats Alternus Clean Energy on 13 of the 14 factors compared between the two stocks.

About Alternus Clean Energy

(Get Free Report)

Alternus Clean Energy, Inc. operates as a power producer. It develops, installs, owns and operates utility scale solar parks in America and Europe. It operates through the United States and Europe geographical segments. The company was founded by Vincent Browne in 2017 and is headquartered in New York, NY.

About Clearway Energy

(Get Free Report)

Clearway Energy, Inc. operates in the renewable energy business in the United States. The company operates through Conventional and Renewables segments. It has approximately 6,000 net MW of installed wind, solar, and energy generation projects; and approximately 2,500 net MW of natural gas-fired generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.

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