Critical Analysis: ReNew Energy Global (NASDAQ:RNW) and Datang International Power Generation (OTCMKTS:DIPGY)

ReNew Energy Global (NASDAQ:RNW) and Datang International Power Generation (OTCMKTS:DIPGY) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ReNew Energy Global and Datang International Power Generation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReNew Energy Global	0	0	4	0	3.00
Datang International Power Generation	0	0	0	0	N/A

ReNew Energy Global currently has a consensus price target of $8.94, suggesting a potential upside of 53.30%. Given ReNew Energy Global’s higher probable upside, equities analysts clearly believe ReNew Energy Global is more favorable than Datang International Power Generation.

Profitability

This table compares ReNew Energy Global and Datang International Power Generation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ReNew Energy Global	4.17%	3.36%	0.48%
Datang International Power Generation	N/A	N/A	N/A

Insider & Institutional Ownership

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

Valuation and Earnings

This table compares ReNew Energy Global and Datang International Power Generation’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	1.83	$41.00 million	$0.12	48.58
Datang International Power Generation	$14.10 billion	0.20	$142.63 million	N/A	N/A

Datang International Power Generation has higher revenue and earnings than ReNew Energy Global.

Risk & Volatility

ReNew Energy Global has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Datang International Power Generation has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Summary

ReNew Energy Global beats Datang International Power Generation on 9 of the 11 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 Datang International Power Generation

Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation and power plant development activities in the People's Republic of China. The company operates through Power and heat generation, Coal, and Other segments. It generates electricity through various sources, such as coal-fired, thermal, hydro, wind, nuclear, biomass, and solar. As of December 31, 2019, the company managed an installed capacity of approximately 68,278.10 MW. It also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminum smelting; production and sale of alumina; cargo shipping; sale of coal ash and integrated application of solid waste; power plant construction and operation; repair and testing of power equipment; research and development activities; and provision of power related technical services. The company was formerly known as Beijing Datang Power Generation Co., Ltd and changed its name to Datang International Power Generation Co, Ltd. in April 2004. The company was founded in 1994 and is headquartered in Beijing, the People's Republic of China. Datang International Power Generation Co., Ltd. is a subsidiary of China Datang Corporation Limited.