ReNew Energy Global (NASDAQ:RNW) and TransAlta Renewables (OTCMKTS:TRSWF) Head to Head Review

ReNew Energy Global (NASDAQ:RNW) and TransAlta Renewables (OTCMKTS:TRSWF) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares ReNew Energy Global and TransAlta Renewables’ 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%
TransAlta Renewables	N/A	N/A	N/A

Institutional & Insider Ownership

43.6% of ReNew Energy Global shares are owned by institutional investors. Comparatively, 75.9% of TransAlta Renewables shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares ReNew Energy Global and TransAlta Renewables’ 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	$1.09 billion	2.06	-$58.00 million	$0.10	60.00
TransAlta Renewables	N/A	N/A	N/A	$0.37	24.68

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

Analyst Recommendations

This is a summary of recent ratings and price targets for ReNew Energy Global and TransAlta Renewables, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	0	5	0	3.00
TransAlta Renewables	0	1	0	0	2.00

ReNew Energy Global presently has a consensus price target of $8.55, indicating a potential upside of 42.50%. TransAlta Renewables has a consensus price target of $21.00, indicating a potential upside of 129.51%. Given TransAlta Renewables’ higher possible upside, analysts clearly believe TransAlta Renewables is more favorable than ReNew Energy Global.

Summary

ReNew Energy Global beats TransAlta Renewables on 8 of the 11 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 TransAlta Renewables

TransAlta Renewables Inc. owns, develops, and operates renewable and natural gas power generation facilities and other infrastructure assets in Canada, the United States, and Australia. The company operates through Canadian Wind, Canadian Hydro, Canadian Gas, US Wind and Solar, US Gas, and Australian Gas segments. Its portfolio of assets comprises 50 renewable power generation facilities, including wind, hydro, and gas. The company was incorporated in 2013 and is headquartered in Calgary, Canada. TransAlta Renewables Inc. operates as a subsidiary of TransAlta Corporation.