Critical Comparison: Yankuang Energy Group (OTCMKTS:YZCAY) & Brookfield Renewable Partners (NYSE:BEP)

Brookfield Renewable Partners (NYSE:BEP) and Yankuang Energy Group (OTCMKTS:YZCAY) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Profitability

This table compares Brookfield Renewable Partners and Yankuang Energy Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable Partners	4.50%	0.84%	0.29%
Yankuang Energy Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Brookfield Renewable Partners and Yankuang Energy Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable Partners	0	6	10	0	2.62
Yankuang Energy Group	0	1	0	0	2.00

Brookfield Renewable Partners presently has a consensus target price of $38.14, suggesting a potential upside of 25.54%. Given Brookfield Renewable Partners’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brookfield Renewable Partners is more favorable than Yankuang Energy Group.

Earnings & Valuation

This table compares Brookfield Renewable Partners and Yankuang Energy Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable Partners	$6.41 billion	1.42	$3.00 million	($0.46)	-66.05
Yankuang Energy Group	$18.55 billion	0.88	$1.19 billion	$1.78	9.44

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

Volatility & Risk

Brookfield Renewable Partners has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Yankuang Energy Group has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Dividends

Brookfield Renewable Partners pays an annual dividend of $1.57 per share and has a dividend yield of 5.2%. Yankuang Energy Group pays an annual dividend of $0.74 per share and has a dividend yield of 4.4%. Brookfield Renewable Partners pays out -341.3% of its earnings in the form of a dividend. Yankuang Energy Group pays out 41.6% 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 raised its dividend for 2 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

63.2% of Brookfield Renewable Partners shares are held by institutional investors. 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.

Summary

Brookfield Renewable Partners beats Yankuang Energy Group on 12 of the 16 factors compared between the two stocks.

About Brookfield Renewable Partners

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, and Brazil. The company generates electricity through hydroelectric, wind, solar, distributed generation, and pumped storage, as well as renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is based in Toronto, Canada. Brookfield Renewable Partners L.P operates as a subsidiary of Brookfield Corporation.

About Yankuang Energy Group

Yankuang Energy Group Company Limited engages in the mining, preparation, and sale of coal in China and internationally. It offers thermal, PCI, and coking coal for electric power, metallurgy, chemical industry, etc.; manufactures, installs, and sells mining equipment and machinery; manufactures and sells coal mining and excavating equipment, cable, and rubber products; manufactures and sells methanol, acetic acid, ethyl acetate, caprolactam, naphtha, crude liquid wax, etc.; produces and sells chemicals and synthesis catalyst; explores for potash mineral; and sells coal mine machinery equipment and accessories, construction materials, petroleum products, and mineral products. The company also provides electricity and related heat supply; railway, river, and lakes transportation; coal mining technology development, transfer, and consultation; underground mines and coal mine management; supply chain management; factoring; engineering; water pollution control; equity investment fund and corporate asset management, investment advisory and corporate management, foreign investment fund, and trading services; solar and wind power, and production management; and financial services, as well as operates as a trade broker and agent. In addition, it engages in the processing, sale, and transportation of coal; coal resource exploration development; LTCC technology development and equipment rental activities; house and financial leasing; wholesale of coal and non-ferrous metals; real estate development and operation, and property management; investment and management of mineral resources; and logistics storage and leasing activities. The company was formerly known as Yanzhou Coal Mining Company Limited and changed its name to Yankuang Energy Group Company Limited in December 2021. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yankuang Energy Group Company Limited is a subsidiary of Shandong Energy Group Co.,Ltd.