Financial Analysis: Clearway Energy (NYSE:CWEN) & Itm Power (OTCMKTS:ITMPF)

Itm Power (OTCMKTS:ITMPF) and Clearway Energy (NYSE:CWEN) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

84.5% of Clearway Energy shares are held by institutional investors. 0.5% of Clearway Energy shares are held 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 and Risk

Itm Power has a beta of 3.3, meaning that its stock price is 230% more volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Itm Power and Clearway Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itm Power	N/A	N/A	N/A
Clearway Energy	0.13%	0.04%	0.01%

Earnings & Valuation

This table compares Itm Power and Clearway Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itm Power	$33.35 million	26.10	-$58.30 million	N/A	N/A
Clearway Energy	$1.43 billion	4.56	$169.00 million	$0.04	794.08

Clearway Energy has higher revenue and earnings than Itm Power.

Analyst Ratings

This is a summary of recent recommendations for Itm Power and Clearway Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itm Power	0	1	1	1	3.00
Clearway Energy	1	2	4	2	2.78

Clearway Energy has a consensus target price of $44.00, suggesting a potential upside of 38.53%. Given Clearway Energy’s higher probable upside, analysts plainly believe Clearway Energy is more favorable than Itm Power.

Summary

Clearway Energy beats Itm Power on 10 of the 13 factors compared between the two stocks.

About Itm Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.

About Clearway Energy

Clearway Energy, Inc. operates in the renewable energy business in the United States. The company operates through Conventional and Renewables segments. It has approximately 6,000 net MW of installed wind, solar, and energy generation projects; and approximately 2,500 net MW of natural gas-fired generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.