AES (NYSE:AES – Get Free Report) and ReNew Energy Global (NASDAQ:RNW – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Profitability
This table compares AES and ReNew Energy Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AES | 14.30% | 20.69% | 3.62% |
| ReNew Energy Global | 7.58% | 8.60% | 1.19% |
Analyst Ratings
This is a summary of current ratings for AES and ReNew Energy Global, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AES | 0 | 7 | 0 | 0 | 2.00 |
| ReNew Energy Global | 0 | 4 | 0 | 0 | 2.00 |
AES currently has a consensus price target of $15.83, indicating a potential upside of 6.17%. ReNew Energy Global has a consensus price target of $6.39, indicating a potential downside of 7.26%. Given AES’s higher probable upside, equities research analysts plainly believe AES is more favorable than ReNew Energy Global.
Earnings and Valuation
This table compares AES and ReNew Energy Global”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AES | $12.23 billion | 0.87 | $910.00 million | $2.62 | 5.69 |
| ReNew Energy Global | $1.60 billion | 1.56 | $105.00 million | $0.32 | 21.53 |
AES has higher revenue and earnings than ReNew Energy Global. AES 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.
Institutional and Insider Ownership
93.1% of AES shares are owned by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are owned by institutional investors. 0.8% of AES shares are owned by company insiders. Comparatively, 8.7% of ReNew Energy Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
AES has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Summary
AES beats ReNew Energy Global on 8 of the 12 factors compared between the two stocks.
About AES
The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
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.
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