Brookfield Renewable (NYSE:BEPC) & BKV (NYSE:BKV) Critical Review

BKV (NYSE:BKV) and Brookfield Renewable (NYSE:BEPC) are both mid-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Valuation and Earnings

This table compares BKV and Brookfield Renewable”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BKV	$580.98 million	4.31	-$142.87 million	$0.52	49.68
Brookfield Renewable	$5.88 billion	0.96	$236.00 million	($0.89)	-43.65

Brookfield Renewable has higher revenue and earnings than BKV. Brookfield Renewable is trading at a lower price-to-earnings ratio than BKV, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. 4.1% of BKV 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BKV and Brookfield Renewable, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BKV	0	1	6	1	3.00
Brookfield Renewable	1	1	3	0	2.40

BKV currently has a consensus target price of $31.17, indicating a potential upside of 20.65%. Brookfield Renewable has a consensus target price of $39.75, indicating a potential upside of 2.32%. Given BKV’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BKV is more favorable than Brookfield Renewable.

Profitability

This table compares BKV and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BKV	5.67%	6.91%	4.59%
Brookfield Renewable	-34.58%	-12.74%	-3.20%

Risk & Volatility

BKV has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

BKV beats Brookfield Renewable on 12 of the 15 factors compared between the two stocks.

About BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.