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

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

Analyst Recommendations

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

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

ReNew Energy Global has a consensus target price of $8.35, indicating a potential upside of 47.53%. Given ReNew Energy Global’s higher probable upside, analysts clearly believe ReNew Energy Global is more favorable than Principal Solar.

Insider & Institutional Ownership

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

Risk and Volatility

Principal Solar has a beta of 9.28, suggesting that its stock price is 828% more volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Solar	N/A	N/A	N/A	N/A	N/A
ReNew Energy Global	$1.09 billion	1.94	-$58.00 million	$0.10	56.60

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

Summary

ReNew Energy Global beats Principal Solar on 7 of the 9 factors compared between the two stocks.

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.

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.