Brookfield Renewable (BEPC) & Its Peers Critical Comparison

Brookfield Renewable (NYSE:BEPCGet Rating) is one of 85 publicly-traded companies in the “Electric services” industry, but how does it compare to its peers? We will compare Brookfield Renewable to similar businesses based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Dividends

Brookfield Renewable pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Brookfield Renewable pays out -206.4% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.3% and pay out 64.7% of their earnings in the form of a dividend. Brookfield Renewable has increased its dividend for 1 consecutive years. Brookfield Renewable is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for Brookfield Renewable and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Renewable 0 0 1 0 3.00
Brookfield Renewable Competitors 929 4190 3507 105 2.32

Brookfield Renewable presently has a consensus price target of $44.00, indicating a potential upside of 18.85%. As a group, “Electric services” companies have a potential upside of 6.35%. Given Brookfield Renewable’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brookfield Renewable is more favorable than its peers.

Insider and Institutional Ownership

68.0% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 67.2% of shares of all “Electric services” companies are owned by institutional investors. 2.2% of shares of all “Electric services” companies are owned 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.

Earnings and Valuation

This table compares Brookfield Renewable and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Brookfield Renewable $4.10 billion $946.00 million -59.71
Brookfield Renewable Competitors $9.01 billion $494.64 million 18.09

Brookfield Renewable’s peers have higher revenue, but lower earnings than Brookfield Renewable. Brookfield Renewable is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Brookfield Renewable has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Brookfield Renewable’s peers have a beta of -1.37, meaning that their average share price is 237% less volatile than the S&P 500.

Profitability

This table compares Brookfield Renewable and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Renewable -6.22% -2.08% -0.65%
Brookfield Renewable Competitors -10.36% 7.53% 2.31%

Summary

Brookfield Renewable beats its peers on 9 of the 15 factors compared.

About Brookfield Renewable (Get Rating)

Brookfield Renewable Corporation owns and operates a portfolio of renewable energy power generating facilities primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, and solar power plants with an installed capacity of approximately 12,723 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York.

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