Reviewing ReNew Energy Global (NASDAQ:RNW) and Edison International (NYSE:EIX)

Edison International (NYSE:EIX) and ReNew Energy Global (NASDAQ:RNW) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

89.0% of Edison International shares are owned by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are owned by institutional investors. 1.0% of Edison International shares are owned by insiders. Comparatively, 8.7% of ReNew Energy Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Edison International and ReNew Energy Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edison International	$16.34 billion	1.94	$1.41 billion	$3.41	24.01
ReNew Energy Global	$83.66 billion	0.03	$41.00 million	$0.06	118.17

Edison International has higher earnings, but lower revenue than ReNew Energy Global. Edison International 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.

Profitability

This table compares Edison International and ReNew Energy Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edison International	8.52%	13.17%	2.55%
ReNew Energy Global	2.70%	2.16%	0.30%

Volatility & Risk

Edison International has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Edison International and ReNew Energy Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edison International	1	3	8	0	2.58
ReNew Energy Global	0	1	3	0	2.75

Edison International presently has a consensus target price of $88.75, indicating a potential upside of 8.38%. ReNew Energy Global has a consensus target price of $8.67, indicating a potential upside of 22.24%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts clearly believe ReNew Energy Global is more favorable than Edison International.

Summary

Edison International beats ReNew Energy Global on 8 of the 14 factors compared between the two stocks.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.

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.