Contrasting ReNew Energy Global (NASDAQ:RNW) & Fortis (NYSE:FTS)

Fortis (NYSE:FTSGet Free Report) and ReNew Energy Global (NASDAQ:RNWGet Free Report) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares Fortis and ReNew Energy Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortis 12.81% 6.96% 2.31%
ReNew Energy Global 2.86% 2.28% 0.36%

Volatility and Risk

Fortis has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fortis and ReNew Energy Global’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortis $8.49 billion 2.25 $1.07 billion $2.29 17.01
ReNew Energy Global $1.09 billion 2.21 -$58.00 million $0.05 129.03

Fortis has higher revenue and earnings than ReNew Energy Global. Fortis is trading at a lower price-to-earnings ratio than ReNew Energy Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Fortis and ReNew Energy Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortis 1 2 1 0 2.00
ReNew Energy Global 0 0 5 0 3.00

Fortis presently has a consensus target price of $55.13, indicating a potential upside of 41.55%. ReNew Energy Global has a consensus target price of $8.55, indicating a potential upside of 32.56%. Given Fortis’ higher possible upside, research analysts plainly believe Fortis is more favorable than ReNew Energy Global.

Insider & Institutional Ownership

50.2% of Fortis shares are held by institutional investors. Comparatively, 38.3% of ReNew Energy Global shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Fortis beats ReNew Energy Global on 9 of the 14 factors compared between the two stocks.

About Fortis

(Get Free Report)

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 443,000 retail customers in southeastern Arizona; and 102,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,328 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,076,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 584,000 customers in southern and central Alberta; owns 4 hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 143 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 68,000 customers in Ontario; approximately 274,000 customers in Newfoundland and Labrador; approximately 33,000 customers on Grand Cayman, Cayman Islands; and approximately 17,000 customers on certain islands in Turks and Caicos. It also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 90,200 circuit Kilometers (km) of distribution lines; and approximately 51,200 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.

About ReNew Energy Global

(Get Free Report)

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

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