Head-To-Head Analysis: Northland Power (OTCMKTS:NPIFF) & ReNew Energy Global (NASDAQ:RNW)

ReNew Energy Global (NASDAQ:RNW) and Northland Power (OTCMKTS:NPIFF) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ReNew Energy Global and Northland Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	4	0	0	2.00
Northland Power	0	3	4	0	2.57

ReNew Energy Global currently has a consensus target price of $6.39, indicating a potential downside of 6.51%. Given ReNew Energy Global’s higher possible upside, research analysts plainly believe ReNew Energy Global is more favorable than Northland Power.

Earnings and Valuation

This table compares ReNew Energy Global and Northland Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReNew Energy Global	$137.78 billion	0.02	$105.00 million	$0.32	21.36
Northland Power	$1.74 billion	2.34	-$116.84 million	($0.41)	-38.02

ReNew Energy Global has higher revenue and earnings than Northland Power. Northland Power 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ReNew Energy Global	7.24%	7.71%	1.07%
Northland Power	-5.60%	10.37%	3.30%

Insider & Institutional Ownership

43.6% of ReNew Energy Global shares are owned by institutional investors. 8.6% of ReNew Energy Global shares are owned by 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.

Volatility & Risk

ReNew Energy Global has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Northland Power has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Summary

ReNew Energy Global beats Northland Power on 9 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 Northland Power

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in Canada, Netherlands, Germany, Spain, Colombia, and internationally. The company produces electricity from renewable resources, such as wind and solar, as well as natural gas for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest 3.4 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.