EDP – Energias de Portugal (OTCMKTS:EDPFY) versus Brookfield Renewable Partners (NYSE:BEP) Head-To-Head Analysis

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

Earnings and Valuation

This table compares EDP – Energias de Portugal and Brookfield Renewable Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EDP – Energias de Portugal $14.22 billion 1.43 $914.63 million N/A N/A
Brookfield Renewable Partners $3.81 billion 2.36 -$130.00 million ($0.80) -40.94

EDP – Energias de Portugal has higher revenue and earnings than Brookfield Renewable Partners.

Profitability

This table compares EDP – Energias de Portugal and Brookfield Renewable Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EDP – Energias de Portugal 6.66% 7.70% 2.40%
Brookfield Renewable Partners -9.91% -1.92% -0.78%

Dividends

EDP – Energias de Portugal pays an annual dividend of $1.70 per share and has a dividend yield of 3.3%. Brookfield Renewable Partners pays an annual dividend of $1.22 per share and has a dividend yield of 3.7%. Brookfield Renewable Partners pays out -152.5% of its earnings in the form of a dividend. Brookfield Renewable Partners has raised its dividend for 1 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

54.7% of Brookfield Renewable Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EDP – Energias de Portugal and Brookfield Renewable Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EDP – Energias de Portugal 0 0 9 0 3.00
Brookfield Renewable Partners 0 3 11 0 2.79

EDP – Energias de Portugal presently has a consensus price target of $53.92, suggesting a potential upside of 4.39%. Brookfield Renewable Partners has a consensus price target of $44.08, suggesting a potential upside of 34.59%. Given Brookfield Renewable Partners’ higher probable upside, analysts plainly believe Brookfield Renewable Partners is more favorable than EDP – Energias de Portugal.

Volatility & Risk

EDP – Energias de Portugal has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Summary

Brookfield Renewable Partners beats EDP – Energias de Portugal on 8 of the 14 factors compared between the two stocks.

About EDP – Energias de Portugal

EDP-Energias de Portugal SA engages in the provision of electricity generation, supply and distribution. It operates through the following three segments: Renewables, Networks and Client Solutions & Energy Management. The Renewables segment engages in generation of electricity through renewable energy sources. The Networks segment engages in electricity distribution and transmission business, including last resort suppliers. The Customer Solutions and Energy Management segment includes electricity generation from energy sources non-renewable, especially coal and gas; electricity and gas trading and energy solution services. The company was founded in 1976 and is headquartered in Lisbon, Portugal.

About Brookfield Renewable Partners

Brookfield Renewable Partners LP engages in owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.. It operates through following segments: Hydroelectric, Wind, Solar, Energy Transition, and Corporate. The Energy Transition segment distributes generation, pumped storage, cogeneration, and biomass. The company was founded on June 27, 2011 and is headquartered in Hamilton, Bermuda.

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