Critical Comparison: Central Puerto (NYSE:CEPU) and Brookfield Renewable (NYSE:BEPC)

Brookfield Renewable (NYSE:BEPC) and Central Puerto (NYSE:CEPU) are both mid-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

Brookfield Renewable has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Central Puerto has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 3.0% of Central Puerto shares are owned by institutional investors. 0.1% of Central Puerto shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brookfield Renewable and Central Puerto, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	1	1	3	0	2.40
Central Puerto	0	1	1	0	2.50

Brookfield Renewable presently has a consensus target price of $39.75, suggesting a potential upside of 0.71%. Central Puerto has a consensus target price of $17.50, suggesting a potential upside of 14.81%. Given Central Puerto’s stronger consensus rating and higher probable upside, analysts plainly believe Central Puerto is more favorable than Brookfield Renewable.

Earnings & Valuation

This table compares Brookfield Renewable and Central Puerto”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$5.88 billion	0.97	$236.00 million	($0.89)	-44.35
Central Puerto	$810.70 million	2.85	$54.56 million	$1.48	10.30

Brookfield Renewable has higher revenue and earnings than Central Puerto. Brookfield Renewable is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-34.58%	-12.74%	-3.20%
Central Puerto	28.24%	15.01%	10.43%

Summary

Central Puerto beats Brookfield Renewable on 9 of the 14 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.