Clearway Energy (CWEN) and Its Rivals Critical Review

Clearway Energy (NYSE: CWEN) is one of 71 public companies in the “Electric services” industry, but how does it compare to its rivals? We will compare Clearway Energy to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Dividends

Clearway Energy pays an annual dividend of $1.28 per share and has a dividend yield of 6.6%. Clearway Energy pays out 158.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric services” companies pay a dividend yield of 3.6% and pay out 72.2% of their earnings in the form of a dividend.

Profitability

This table compares Clearway Energy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearway Energy 5.20% 6.42% 1.70%
Clearway Energy Competitors 8.29% 9.73% 2.59%

Risk and Volatility

Clearway Energy has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Clearway Energy’s rivals have a beta of -0.04, suggesting that their average stock price is 104% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Clearway Energy and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearway Energy 0 0 0 0 N/A
Clearway Energy Competitors 551 2695 2267 71 2.33

As a group, “Electric services” companies have a potential upside of 7.23%. Given Clearway Energy’s rivals higher possible upside, analysts plainly believe Clearway Energy has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

29.0% of Clearway Energy shares are held by institutional investors. Comparatively, 61.5% of shares of all “Electric services” companies are held by institutional investors. 0.2% of Clearway Energy shares are held by company insiders. Comparatively, 2.5% of shares of all “Electric services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Clearway Energy and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Clearway Energy $1.01 billion -$8.00 million 23.86
Clearway Energy Competitors $8.55 billion $475.99 million 12.21

Clearway Energy’s rivals have higher revenue and earnings than Clearway Energy. Clearway Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Clearway Energy rivals beat Clearway Energy on 9 of the 12 factors compared.

About Clearway Energy

Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2017, it had contracted renewable and conventional generation portfolio of 5,118 net megawatt (MW). The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,319 net MW thermal equivalents, and electric generation capacity of 123 net MW. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. NRG Yield, Inc. is a subsidiary of Global Infrastructure Partners.

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