Analyzing Boralex (OTCMKTS:BRLXF) & TransAlta Renewables (OTCMKTS:TRSWF)

Boralex (OTCMKTS:BRLXF – Get Rating) and TransAlta Renewables (OTCMKTS:TRSWF – Get Rating) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Boralex and TransAlta Renewables’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boralex	N/A	N/A	N/A	($0.13)	-208.83
TransAlta Renewables	N/A	N/A	N/A	$0.37	22.71

Boralex is trading at a lower price-to-earnings ratio than TransAlta Renewables, indicating that it is currently the more affordable of the two stocks.

Dividends

Boralex pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. TransAlta Renewables pays an annual dividend of $0.83 per share and has a dividend yield of 9.8%. Boralex pays out -309.1% of its earnings in the form of a dividend. TransAlta Renewables pays out 223.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Boralex and TransAlta Renewables, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boralex	0	1	2	0	2.67
TransAlta Renewables	0	3	1	0	2.25

Boralex currently has a consensus price target of $47.72, suggesting a potential upside of 81.11%. TransAlta Renewables has a consensus price target of $14.71, suggesting a potential upside of 74.71%. Given Boralex’s stronger consensus rating and higher probable upside, research analysts clearly believe Boralex is more favorable than TransAlta Renewables.

Institutional & Insider Ownership

57.0% of Boralex shares are held by institutional investors. Comparatively, 75.9% of TransAlta Renewables shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Boralex and TransAlta Renewables’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boralex	N/A	N/A	N/A
TransAlta Renewables	N/A	N/A	N/A

About Boralex

(Get Rating)

Boralex, Inc. engages in the development, construction, and operation of renewable energy power facilities. It operates through the following segments: Wind Power Stations, Hydroelectric Power Stations, Solar Power Stations, Thermal Power Power Stations, and Corporate. The company was founded on November 9, 1982 and is headquartered in Kingsey Falls, Canada.

About TransAlta Renewables

(Get Rating)

TransAlta Renewables, Inc. engages in the acquisition of renewable power generation facilities in operation or under construction. It operates through the following segments: Canadian Wind, Canadian Hydro, and Canadian Gas. The Canadian Wind segment includes the result of the Le Nordais facility. The Canadian Hydro segment comprises of the outcome of the Ragged Chute facility. The Canadian Gas segment involves output of the Sarnia facility. The company was founded on May 28, 2013 and is headquartered in Calgary, Canada.