Comparing Edison International (NYSE:EIX) and Brookfield Renewable (NYSE:BEPC)

Brookfield Renewable (NYSE:BEPC) and Edison International (NYSE:EIX) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Dividends

Brookfield Renewable pays an annual dividend of $1.74 per share and has a dividend yield of 2.6%. Edison International pays an annual dividend of $2.55 per share and has a dividend yield of 4.4%. Edison International pays out 54.3% of its earnings in the form of a dividend. Edison International has increased its dividend for 1 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Brookfield Renewable and Edison International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Renewable N/A N/A N/A N/A N/A
Edison International $12.35 billion 1.78 $1.41 billion $4.70 12.36

Edison International has higher revenue and earnings than Brookfield Renewable.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookfield Renewable N/A N/A N/A
Edison International 9.42% 9.80% 2.35%

Institutional & Insider Ownership

87.2% of Edison International shares are owned by institutional investors. 0.6% of Edison International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Brookfield Renewable and Edison International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Renewable 0 1 0 0 2.00
Edison International 0 5 9 0 2.64

Brookfield Renewable presently has a consensus price target of $60.00, indicating a potential downside of 9.82%. Edison International has a consensus price target of $69.21, indicating a potential upside of 19.11%. Given Edison International’s stronger consensus rating and higher probable upside, analysts clearly believe Edison International is more favorable than Brookfield Renewable.

Summary

Edison International beats Brookfield Renewable on 11 of the 12 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation operates renewable power assets in the United States, Brazil, and Colombia. It operates hydroelectric, wind, and solar plants. The company was founded in 2019 and is headquartered in New York, New York.

About Edison International

Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. It generates electricity through hydroelectric, diesel/liquid petroleum gas, natural gas, nuclear, and photovoltaic sources. The company supplies electricity primarily to residential, commercial, industrial, agricultural, and other customers, as well as public authorities through transmission and distribution networks. Its transmission facilities consist of lines ranging from 33 kV to 500 kV and substations; and distribution system comprises approximately 53,000 line miles of overhead lines, 38,000 line miles of underground lines, and 800 substations located in California. The company serves approximately 5 million customers. Edison International was founded in 1886 and is based in Rosemead, California.

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