Head-To-Head Review: Azure Power Global (NYSE:AZRE) vs. Brookfield Renewable Partners (NYSE:BEP)

Azure Power Global (NYSE:AZRE) and Brookfield Renewable Partners (NYSE:BEP) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

51.6% of Azure Power Global shares are owned by institutional investors. Comparatively, 54.0% of Brookfield Renewable Partners shares are owned by institutional investors. 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.

Volatility & Risk

Azure Power Global has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Profitability

This table compares Azure Power Global and Brookfield Renewable Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azure Power Global 1.67% 1.97% 0.41%
Brookfield Renewable Partners 9.16% 1.80% 0.85%

Earnings & Valuation

This table compares Azure Power Global and Brookfield Renewable Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azure Power Global $143.52 million 2.92 $1.13 million $0.13 78.46
Brookfield Renewable Partners $2.98 billion 2.16 $62.00 million $0.13 276.85

Brookfield Renewable Partners has higher revenue and earnings than Azure Power Global. Azure Power Global 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Azure Power Global and Brookfield Renewable Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power Global 0 1 4 0 2.80
Brookfield Renewable Partners 1 3 2 0 2.17

Azure Power Global currently has a consensus target price of $20.33, indicating a potential upside of 99.35%. Brookfield Renewable Partners has a consensus target price of $39.17, indicating a potential upside of 8.83%. Given Azure Power Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Azure Power Global is more favorable than Brookfield Renewable Partners.

Dividends

Brookfield Renewable Partners pays an annual dividend of $2.06 per share and has a dividend yield of 5.7%. Azure Power Global does not pay a dividend. Brookfield Renewable Partners pays out 1,584.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Renewable Partners has raised its dividend for 5 consecutive years.

Summary

Brookfield Renewable Partners beats Azure Power Global on 8 of the 15 factors compared between the two stocks.

About Azure Power Global

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.

About Brookfield Renewable Partners

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The company generates electricity through hydro, wind, solar, cogeneration, and biomass sources. Its portfolio consists of approximately 17,400 megawatts of installed capacity. 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 headquartered in Hamilton, Bermuda.

Receive News & Ratings for Azure Power Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Azure Power Global and related companies with MarketBeat.com's FREE daily email newsletter.