Engie Brasil Energia (OTCMKTS:EGIEY – Get Free Report) and ReNew Energy Global (NASDAQ:RNW – Get Free Report) are both mid-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Profitability
This table compares Engie Brasil Energia and ReNew Energy Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Engie Brasil Energia | 40.50% | 35.70% | 8.38% |
| ReNew Energy Global | 4.17% | 3.36% | 0.48% |
Insider and Institutional Ownership
43.6% of ReNew Energy Global shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Engie Brasil Energia | 0 | 1 | 1 | 0 | 2.50 |
| ReNew Energy Global | 0 | 0 | 4 | 0 | 3.00 |
ReNew Energy Global has a consensus target price of $8.94, suggesting a potential upside of 52.78%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts clearly believe ReNew Energy Global is more favorable than Engie Brasil Energia.
Valuation and Earnings
This table compares Engie Brasil Energia and ReNew Energy Global’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Engie Brasil Energia | $2.15 billion | 3.20 | $686.99 million | $0.80 | 10.56 |
| ReNew Energy Global | $1.16 billion | 1.88 | $50.00 million | $0.12 | 48.75 |
Engie Brasil Energia has higher revenue and earnings than ReNew Energy Global. Engie Brasil Energia 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.
Volatility and Risk
Engie Brasil Energia has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
About Engie Brasil Energia
Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
About ReNew Energy Global
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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