Critical Review: 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 stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES	0	7	0	0	2.00
Eco Wave Power Global AB (publ)	1	0	1	1	2.67

AES presently has a consensus target price of $15.80, indicating a potential upside of 5.86%. Eco Wave Power Global AB (publ) has a consensus target price of $10.00, indicating a potential upside of 145.70%. Given Eco Wave Power Global AB (publ)’s stronger consensus rating and higher possible upside, analysts plainly believe Eco Wave Power Global AB (publ) is more favorable than AES.

Insider & Institutional 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 insiders. Comparatively, 31.3% of Eco Wave Power Global AB (publ) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$12.23 billion	0.87	$910.00 million	$2.49	5.99
Eco Wave Power Global AB (publ)	$40,000.00	564.71	-$3.70 million	($0.52)	-7.83

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.

Volatility and Risk

AES has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Eco Wave Power Global AB (publ) has a beta of -0.39, indicating that its share price is 139% less volatile than the S&P 500.

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	13.16%	20.56%	3.73%
Eco Wave Power Global AB (publ)	N/A	-48.56%	-34.95%

Summary

AES beats Eco Wave Power Global AB (publ) on 9 of the 15 factors compared between the two stocks.

About AES

The AES Corporation is a global power company that develops and operates electricity generation and energy infrastructure. Its portfolio includes renewable energy, natural gas and other power generation, as well as battery energy storage. AES also helps businesses and other customers procure electricity and pursue clean-energy goals. Founded in 1981 as Applied Energy Services, the company has expanded from its U.S. origins to serve customers across multiple regions, including the Americas, Europe and Asia.

About Eco Wave Power Global AB (publ)

Eco Wave Power Global AB (publ) is a renewable energy technology company that develops systems designed to generate electricity from ocean and sea waves. Its technology uses floaters installed on existing marine structures, such as breakwaters, piers and ports. The movement of the waves drives hydraulic systems that power generators, while the equipment can be raised above sea level during severe weather conditions. Founded in 2011, the company has developed and commercialized a patented onshore wave energy conversion technology intended to reduce the infrastructure and maintenance challenges associated with offshore systems.