Comparing ReNew Energy Global (NASDAQ:RNW) and AES (NYSE:AES)

AES (NYSE:AES) and ReNew Energy Global (NASDAQ:RNW) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Valuation & Earnings

This table compares AES and ReNew Energy Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$12.23 billion	0.86	$910.00 million	$2.62	5.66
ReNew Energy Global	$1.60 billion	1.55	$105.00 million	$0.32	21.38

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.

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	8	0	0	2.00
ReNew Energy Global	0	4	0	0	2.00

AES presently has a consensus price target of $15.71, indicating a potential upside of 6.00%. ReNew Energy Global has a consensus price target of $6.39, indicating a potential downside of 6.58%. Given AES’s higher possible upside, equities analysts clearly believe AES is more favorable than ReNew Energy Global.

Risk & Volatility

AES has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

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	7.24%	7.71%	1.07%

Institutional & Insider Ownership

93.1% of AES shares are held by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are held by institutional investors. 0.8% of AES shares are held by company insiders. Comparatively, 8.7% of ReNew Energy Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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.