Financial Analysis: ReNew Energy Global (NASDAQ:RNW) vs. CenterPoint Energy (NYSE:CNP)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ReNew Energy Global and CenterPoint Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	1	1	0	2.50
CenterPoint Energy	0	8	6	0	2.43

ReNew Energy Global presently has a consensus price target of $7.50, suggesting a potential upside of 13.64%. CenterPoint Energy has a consensus price target of $35.79, suggesting a potential downside of 6.40%. Given ReNew Energy Global’s stronger consensus rating and higher probable upside, research analysts plainly believe ReNew Energy Global is more favorable than CenterPoint Energy.

Earnings and Valuation

This table compares ReNew Energy Global and CenterPoint Energy”s gross revenue, earnings per share 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	132.00
CenterPoint Energy	$8.94 billion	2.79	$917.00 million	$1.49	25.66

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

Insider & Institutional Ownership

43.6% of ReNew Energy Global shares are owned by institutional investors. Comparatively, 91.8% of CenterPoint Energy shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by insiders. Comparatively, 0.1% of CenterPoint Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ReNew Energy Global and CenterPoint Energy’s 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%
CenterPoint Energy	11.79%	10.02%	2.48%

Volatility & 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, CenterPoint Energy has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

CenterPoint Energy beats ReNew Energy Global on 8 of the 14 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 CenterPoint Energy

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides maintenance and repair services of home appliances to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. It serves approximately 2,534,730 metered customers; owned 348 substations with transformer capacity of 79,719 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.