Pinnacle West Capital (NYSE:PNW – Get Free Report) and ReNew Energy Global (NASDAQ:RNW – Get Free Report) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Pinnacle West Capital and ReNew Energy Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pinnacle West Capital | 11.09% | 8.29% | 2.13% |
| ReNew Energy Global | 4.17% | 3.36% | 0.48% |
Valuation & Earnings
This table compares Pinnacle West Capital and ReNew Energy Global’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pinnacle West Capital | $4.70 billion | 2.06 | $501.56 million | $4.59 | 18.56 |
| ReNew Energy Global | $1.16 billion | 1.82 | $50.00 million | $0.12 | 47.17 |
Risk and Volatility
Pinnacle West Capital has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Pinnacle West Capital and ReNew Energy Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pinnacle West Capital | 0 | 7 | 5 | 0 | 2.42 |
| ReNew Energy Global | 0 | 0 | 4 | 0 | 3.00 |
Pinnacle West Capital presently has a consensus target price of $76.77, indicating a potential downside of 9.88%. ReNew Energy Global has a consensus target price of $8.94, indicating a potential upside of 57.91%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts plainly believe ReNew Energy Global is more favorable than Pinnacle West Capital.
Insider & Institutional Ownership
91.5% of Pinnacle West Capital shares are owned by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are owned by institutional investors. 0.2% of Pinnacle West Capital shares are owned by company insiders. Comparatively, 8.7% of ReNew Energy Global shares are owned by company 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 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.
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.
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