Brookfield Renewable Partners (NYSE:BEP) and Edison International (NYSE:EIX) are both large-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Brookfield Renewable Partners and Edison International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Brookfield Renewable Partners | 1 | 11 | 2 | 0 | 2.07 |
Edison International | 0 | 4 | 9 | 0 | 2.69 |
Brookfield Renewable Partners currently has a consensus price target of $39.9841, suggesting a potential downside of 14.98%. Edison International has a consensus price target of $69.3846, suggesting a potential upside of 17.40%. Given Edison International's stronger consensus rating and higher probable upside, analysts clearly believe Edison International is more favorable than Brookfield Renewable Partners.
Volatility & Risk
Brookfield Renewable Partners has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Edison International has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
Earnings and Valuation
This table compares Brookfield Renewable Partners and Edison International's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Brookfield Renewable Partners | $2.98 billion | 4.34 | $10 million | N/A | N/A |
Edison International | $12.35 billion | 1.81 | $1.41 billion | $4.70 | 12.57 |
Edison International has higher revenue and earnings than Brookfield Renewable Partners.
Insider and Institutional Ownership
36.2% of Brookfield Renewable Partners shares are owned by institutional investors. Comparatively, 87.6% of Edison International shares are owned by institutional investors. 0.6% of Edison International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Brookfield Renewable Partners pays an annual dividend of $1.16 per share and has a dividend yield of 2.5%. Edison International pays an annual dividend of $2.65 per share and has a dividend yield of 4.5%. Edison International pays out 56.4% of its earnings in the form of a dividend. Edison International has raised its dividend for 1 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Brookfield Renewable Partners and Edison International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Brookfield Renewable Partners | -1.22% | -0.23% | -0.10% |
Edison International | 3.23% | 10.57% | 2.51% |
Summary
Edison International beats Brookfield Renewable Partners on 13 of the 16 factors compared between the two stocks.