Financial Comparison: ReNew Energy Global (NASDAQ:RNW) vs. Edison International (NYSE:EIX)

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

Analyst Recommendations

This is a breakdown of recent ratings for ReNew Energy Global and Edison International, as provided by MarketBeat.

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

ReNew Energy Global presently has a consensus target price of $8.67, indicating a potential upside of 24.88%. Edison International has a consensus target price of $88.75, indicating a potential upside of 13.40%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, research analysts plainly believe ReNew Energy Global is more favorable than Edison International.

Volatility and Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReNew Energy Global	$83.66 billion	0.03	$41.00 million	$0.06	115.67
Edison International	$17.32 billion	1.75	$1.41 billion	$3.41	22.95

Edison International has lower revenue, but higher earnings 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 ReNew Energy Global and Edison International’s net margins, return on equity and return on assets.

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

Insider & Institutional Ownership

43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 88.9% of Edison International shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company insiders. Comparatively, 1.0% of Edison International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Edison International beats ReNew Energy Global on 8 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 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.