ReNew Energy Global (NASDAQ:RNW – Get Free Report) and NRG Energy (NYSE:NRG – Get Free Report) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Insider & Institutional Ownership
43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 97.7% of NRG Energy shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company insiders. Comparatively, 0.6% of NRG Energy shares are held 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.
Profitability
This table compares ReNew Energy Global and NRG Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ReNew Energy Global | 3.61% | 2.96% | 0.44% |
| NRG Energy | -0.70% | 44.03% | 4.00% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ReNew Energy Global | 0 | 0 | 5 | 0 | 3.00 |
| NRG Energy | 0 | 4 | 3 | 0 | 2.43 |
ReNew Energy Global currently has a consensus price target of $8.35, indicating a potential upside of 31.29%. NRG Energy has a consensus price target of $59.50, indicating a potential downside of 23.64%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ReNew Energy Global is more favorable than NRG Energy.
Volatility & Risk
ReNew Energy Global has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, NRG Energy has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Earnings & Valuation
This table compares ReNew Energy Global and NRG Energy’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ReNew Energy Global | $86.52 billion | 0.03 | -$58.00 million | $0.10 | 63.60 |
| NRG Energy | $28.82 billion | 0.58 | -$202.00 million | ($1.07) | -72.82 |
ReNew Energy Global has higher revenue and earnings than NRG Energy. NRG Energy 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.
Summary
ReNew Energy Global beats NRG Energy 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 NRG Energy
NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.
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