Critical Analysis: ReNew Energy Global (NASDAQ:RNW) & Principal Solar (OTCMKTS:PSWW)

ReNew Energy Global (NASDAQ:RNW) and Principal Solar (OTCMKTS:PSWW) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation and Earnings

This table compares ReNew Energy Global and Principal Solar’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReNew Energy Global	$86.52 billion	0.02	-$58.00 million	$0.10	55.10
Principal Solar	N/A	N/A	N/A	N/A	N/A

Principal Solar has lower revenue, but higher earnings than ReNew Energy Global.

Institutional & Insider Ownership

43.6% of ReNew Energy Global shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by company insiders. Comparatively, 39.2% of Principal Solar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ReNew Energy Global	3.61%	2.96%	0.44%
Principal Solar	N/A	N/A	N/A

Risk and Volatility

ReNew Energy Global has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Principal Solar has a beta of 9.27, indicating that its share price is 827% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for ReNew Energy Global and Principal Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	0	5	0	3.00
Principal Solar	0	0	0	0	N/A

ReNew Energy Global currently has a consensus target price of $8.35, suggesting a potential upside of 51.54%. Given ReNew Energy Global’s higher possible upside, research analysts plainly believe ReNew Energy Global is more favorable than Principal Solar.

Summary

ReNew Energy Global beats Principal Solar on 7 of the 9 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 Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.