Edison International (NYSE:EIX) & ReNew Energy Global (NASDAQ:RNW) Financial Review

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

Analyst Recommendations

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

	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 currently has a consensus target price of $8.67, suggesting a potential upside of 21.72%. Edison International has a consensus target price of $88.75, suggesting a potential upside of 9.34%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, analysts plainly believe ReNew Energy Global is more favorable than Edison International.

Insider and 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

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

Valuation & Earnings

This table compares ReNew Energy Global and Edison International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReNew Energy Global	$1.16 billion	2.23	$41.00 million	$0.06	118.69
Edison International	$17.32 billion	1.81	$1.41 billion	$3.41	23.80

Edison International has higher revenue and 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%

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.