Critical Analysis: Eco Wave Power Global AB (publ) (NASDAQ:WAVE) versus AES (NYSE:AES)

AES (NYSE:AES) and Eco Wave Power Global AB (publ) (NASDAQ:WAVE) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares AES and Eco Wave Power Global AB (publ)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$13.05 billion	0.81	$910.00 million	$2.62	5.67
Eco Wave Power Global AB (publ)	$40,000.00	815.85	-$3.70 million	($0.60)	-9.80

AES has higher revenue and earnings than Eco Wave Power Global AB (publ). Eco Wave Power Global AB (publ) is trading at a lower price-to-earnings ratio than AES, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AES and Eco Wave Power Global AB (publ)’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%
Eco Wave Power Global AB (publ)	N/A	-58.04%	-40.99%

Volatility and Risk

AES has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Eco Wave Power Global AB (publ) has a beta of -0.37, meaning that its share price is 137% less volatile than the S&P 500.

Institutional & Insider Ownership

93.1% of AES shares are held by institutional investors. Comparatively, 0.6% of Eco Wave Power Global AB (publ) shares are held by institutional investors. 0.8% of AES shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for AES and Eco Wave Power Global AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES	0	8	0	0	2.00
Eco Wave Power Global AB (publ)	1	0	0	1	2.50

AES currently has a consensus price target of $15.71, suggesting a potential upside of 5.71%. Given AES’s higher possible upside, equities research analysts clearly believe AES is more favorable than Eco Wave Power Global AB (publ).

Summary

AES beats Eco Wave Power Global AB (publ) on 11 of the 14 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 Eco Wave Power Global AB (publ)

Eco Wave Power Global AB (publ), a wave energy company, engages in the development of a wave energy conversion (WEC) technology that converts ocean and sea waves into clean electricity. The company also holds various agreements comprising power purchase agreements, concession agreements, and other agreements worldwide with pipeline of projects with approximately 404.7 megawatts. It has operations in the United States, Sweden, Israel, the British Overseas Territory of Gibraltar, Greece, Portugal, China, Australia, and internationally. The company was formerly known as EWPG Holding AB (publ) and changed its name to Eco Wave Power Global AB (publ) in June 2021. Eco Wave Power Global AB (publ) was founded in 2011 and is headquartered in Tel Aviv-Yafo, Israel.