Contrasting ReNew Energy Global (RNW) & Its Rivals

ReNew Energy Global (NASDAQ:RNW) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it contrast to its peers? We will compare ReNew Energy Global to related businesses based on the strength of its dividends, institutional ownership, valuation, profitability, risk, earnings and analyst recommendations.

Risk & Volatility

ReNew Energy Global has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, ReNew Energy Global’s peers have a beta of 0.62, suggesting that their average stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for ReNew Energy Global and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	4	0	0	2.00
ReNew Energy Global Competitors	961	2976	3794	186	2.40

ReNew Energy Global presently has a consensus price target of $6.39, indicating a potential downside of 6.72%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 142.42%. Given ReNew Energy Global’s peers stronger consensus rating and higher possible upside, analysts clearly believe ReNew Energy Global has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares ReNew Energy Global and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ReNew Energy Global	$137.78 billion	$105.00 million	21.41
ReNew Energy Global Competitors	$8.50 billion	$801.06 million	14.85

ReNew Energy Global has higher revenue, but lower earnings than its peers. ReNew Energy Global is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares ReNew Energy Global and its peers’ 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%
ReNew Energy Global Competitors	-37.00%	13.62%	0.71%

Insider & Institutional Ownership

43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 35.2% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 8.6% of ReNew Energy Global shares are held by company insiders. Comparatively, 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

ReNew Energy Global peers beat ReNew Energy Global on 7 of the 13 factors compared.

ReNew Energy Global Company Profile

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.