Financial Survey: Boralex (OTCMKTS:BRLXF) vs. Brookfield Renewable Partners (NYSE:BEP)

Brookfield Renewable Partners (NYSE:BEP) and Boralex (OTCMKTS:BRLXF) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brookfield Renewable Partners and Boralex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable Partners	0	6	10	0	2.62
Boralex	0	2	1	0	2.33

Brookfield Renewable Partners presently has a consensus target price of $38.14, indicating a potential upside of 22.10%. Given Brookfield Renewable Partners’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brookfield Renewable Partners is more favorable than Boralex.

Valuation & Earnings

This table compares Brookfield Renewable Partners and Boralex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable Partners	$6.41 billion	1.46	$3.00 million	($0.46)	-67.91
Boralex	N/A	N/A	N/A	($0.13)	-213.03

Brookfield Renewable Partners has higher revenue and earnings than Boralex. Boralex is trading at a lower price-to-earnings ratio than Brookfield Renewable Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Brookfield Renewable Partners pays an annual dividend of $1.57 per share and has a dividend yield of 5.0%. Boralex pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Brookfield Renewable Partners pays out -341.3% of its earnings in the form of a dividend. Boralex pays out -309.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brookfield Renewable Partners has raised its dividend for 2 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

63.2% of Brookfield Renewable Partners shares are held by institutional investors. Comparatively, 57.0% of Boralex shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Brookfield Renewable Partners and Boralex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable Partners	4.50%	0.84%	0.29%
Boralex	N/A	N/A	N/A

Summary

Brookfield Renewable Partners beats Boralex on 12 of the 13 factors compared between the two stocks.

About Brookfield Renewable Partners

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, and Brazil. The company generates electricity through hydroelectric, wind, solar, distributed generation, and pumped storage, as well as renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is based in Toronto, Canada. Brookfield Renewable Partners L.P operates as a subsidiary of Brookfield Corporation.

About Boralex

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities in Canada, France, the United States, and the United Kingdom. It generates electricity from wind, solar, and hydroelectric resources. As of December 31, 2023, the company operates 100 wind farms; 12 solar energy facilities; 15 hydroelectric power stations; and 2 storage units with an installed capacity of 1,819 megawatts (MW) in North America and 1,259 MW in Europe. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.