Financial Comparison: RWE (OTCMKTS:RWEOY) and CLP (OTCMKTS:CLPHY)

CLP (OTCMKTS:CLPHY) and RWE (OTCMKTS:RWEOY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Dividends

CLP pays an annual dividend of $0.63 per share and has a dividend yield of 6.6%. RWE pays an annual dividend of $0.88 per share and has a dividend yield of 1.3%. RWE pays out 18.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares CLP and RWE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLP	$11.29 billion	2.13	$1.46 billion	N/A	N/A
RWE	$19.94 billion	2.48	$3.54 billion	$4.88	13.98

RWE has higher revenue and earnings than CLP.

Analyst Recommendations

This is a breakdown of current ratings for CLP and RWE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLP	0	2	0	0	2.00
RWE	0	3	1	1	2.60

RWE has a consensus target price of $53.30, indicating a potential downside of 21.86%. Given RWE’s stronger consensus rating and higher probable upside, analysts plainly believe RWE is more favorable than CLP.

Profitability

This table compares CLP and RWE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLP	N/A	N/A	N/A
RWE	17.96%	4.96%	1.88%

Risk & Volatility

CLP has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, RWE has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Summary

RWE beats CLP on 11 of the 13 factors compared between the two stocks.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

About RWE

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.