ReNew Energy Global (NASDAQ:RNW – Get Free Report) and Pinnacle West Capital (NYSE:PNW – Get Free Report) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares ReNew Energy Global and Pinnacle West Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ReNew Energy Global | 4.17% | 3.36% | 0.48% |
| Pinnacle West Capital | 11.09% | 8.29% | 2.13% |
Valuation & Earnings
This table compares ReNew Energy Global and Pinnacle West Capital’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ReNew Energy Global | $1.16 billion | 1.82 | $50.00 million | $0.12 | 47.17 |
| Pinnacle West Capital | $4.70 billion | 2.06 | $501.56 million | $4.59 | 18.56 |
Risk & Volatility
ReNew Energy Global has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for ReNew Energy Global and Pinnacle West Capital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ReNew Energy Global | 0 | 0 | 4 | 0 | 3.00 |
| Pinnacle West Capital | 0 | 7 | 5 | 0 | 2.42 |
ReNew Energy Global presently has a consensus target price of $8.94, indicating a potential upside of 57.91%. Pinnacle West Capital has a consensus target price of $76.77, indicating a potential downside of 9.88%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ReNew Energy Global is more favorable than Pinnacle West Capital.
Institutional and Insider Ownership
43.6% of ReNew Energy Global shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Pinnacle West Capital beats ReNew Energy Global on 9 of the 14 factors compared between the two stocks.
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.
About Pinnacle West Capital
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
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