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.
Brookfield Renewable Partners (NYSE:BEP) and TransAlta (NYSE:TAC) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation, media sentiment, earnings and community ranking.
Brookfield Renewable Partners has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, TransAlta has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
63.2% of Brookfield Renewable Partners shares are owned by institutional investors. Comparatively, 59.0% of TransAlta shares are owned by institutional investors. 13.1% of TransAlta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Brookfield Renewable Partners currently has a consensus target price of $31.08, suggesting a potential upside of 11.53%. Given TransAlta's higher probable upside, equities research analysts plainly believe Brookfield Renewable Partners is more favorable than TransAlta.
TransAlta has a net margin of 18.70% compared to TransAlta's net margin of 7.10%. Brookfield Renewable Partners' return on equity of 45.47% beat TransAlta's return on equity.
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.
Brookfield Renewable Partners pays an annual dividend of $1.42 per share and has a dividend yield of 5.1%. TransAlta pays an annual dividend of $0.18 per share and has a dividend yield of 2.5%. Brookfield Renewable Partners pays out -308.7% of its earnings in the form of a dividend. TransAlta pays out 11.6% 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 has increased its dividend for 1 consecutive years and TransAlta has increased its dividend for 1 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
TransAlta has lower revenue, but higher earnings 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.
In the previous week, Brookfield Renewable Partners had 13 more articles in the media than TransAlta. MarketBeat recorded 18 mentions for Brookfield Renewable Partners and 5 mentions for TransAlta. TransAlta's average media sentiment score of 0.81 beat Brookfield Renewable Partners' score of 0.70 indicating that Brookfield Renewable Partners is being referred to more favorably in the media.
Summary
Brookfield Renewable Partners beats TransAlta on 12 of the 21 factors compared between the two stocks.
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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.
Skip ChartThis 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.
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