Analyzing Engie Brasil Energia (OTCMKTS:EGIEY) & ReNew Energy Global (NASDAQ:RNW)

Engie Brasil Energia (OTCMKTS:EGIEY) and ReNew Energy Global (NASDAQ:RNW) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Engie Brasil Energia and ReNew Energy Global’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasil Energia	$2.15 billion	N/A	$686.99 million	$1.05	8.22
ReNew Energy Global	$81.32 billion	0.03	$50.00 million	$0.12	51.75

Engie Brasil Energia has higher earnings, but lower revenue than ReNew Energy Global. Engie Brasil Energia 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 Engie Brasil Energia and ReNew Energy Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Engie Brasil Energia	40.50%	35.70%	8.38%
ReNew Energy Global	4.17%	3.36%	0.48%

Insider & Institutional Ownership

43.6% of ReNew Energy Global shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Engie Brasil Energia and ReNew Energy Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasil Energia	0	1	1	0	2.50
ReNew Energy Global	0	0	4	0	3.00

ReNew Energy Global has a consensus price target of $8.94, indicating a potential upside of 43.92%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts plainly believe ReNew Energy Global is more favorable than Engie Brasil Energia.

Volatility and Risk

Engie Brasil Energia has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Summary

ReNew Energy Global beats Engie Brasil Energia on 8 of the 13 factors compared between the two stocks.

About Engie Brasil Energia

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.

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.