TAC vs. BEP, OGE, BEPC, CWEN, CIG, IDA, ORA, POR, AQN, and ENIC
Should you be buying TransAlta stock or one of its competitors? The main competitors of TransAlta include Brookfield Renewable Partners (BEP), OGE Energy (OGE), Brookfield Renewable (BEPC), Clearway Energy (CWEN), CEMIG (CIG), IDACORP (IDA), Ormat Technologies (ORA), Portland General Electric (POR), Algonquin Power & Utilities (AQN), and Enel Chile (ENIC). These companies are all part of the "electric services" industry.
TransAlta (NYSE:TAC) and Brookfield Renewable Partners (NYSE:BEP) are both mid-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
59.0% of TransAlta shares are owned by institutional investors. Comparatively, 63.2% of Brookfield Renewable Partners shares are owned by institutional investors. 13.1% of TransAlta shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
In the previous week, Brookfield Renewable Partners had 12 more articles in the media than TransAlta. MarketBeat recorded 17 mentions for Brookfield Renewable Partners and 5 mentions for TransAlta. Brookfield Renewable Partners' average media sentiment score of 0.75 beat TransAlta's score of 0.33 indicating that Brookfield Renewable Partners is being referred to more favorably in the news media.
Brookfield Renewable Partners received 180 more outperform votes than TransAlta when rated by MarketBeat users. Likewise, 61.83% of users gave Brookfield Renewable Partners an outperform vote while only 54.90% of users gave TransAlta an outperform vote.
TransAlta has a net margin of 18.70% compared to Brookfield Renewable Partners' net margin of 7.10%. TransAlta's return on equity of 45.47% beat Brookfield Renewable Partners' return on equity.
TransAlta has higher earnings, but lower revenue than Brookfield Renewable Partners. Brookfield Renewable Partners is trading at a lower price-to-earnings ratio than TransAlta, indicating that it is currently the more affordable of the two stocks.
TransAlta has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
TransAlta pays an annual dividend of $0.18 per share and has a dividend yield of 2.5%. Brookfield Renewable Partners pays an annual dividend of $1.42 per share and has a dividend yield of 5.1%. TransAlta pays out 11.6% of its earnings in the form of a dividend. Brookfield Renewable Partners pays out -308.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Brookfield Renewable Partners has a consensus target price of $31.08, indicating a potential upside of 11.53%. Given Brookfield Renewable Partners' higher probable upside, analysts clearly believe Brookfield Renewable Partners is more favorable than TransAlta.
Summary
Brookfield Renewable Partners beats TransAlta on 12 of the 21 factors compared between the two stocks.
Get TransAlta News Delivered to You Automatically
Sign up to receive the latest news and ratings for TAC and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding TAC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
TransAlta Competitors List
Related Companies and Tools
