Clearway Energy (NYSE:CWEN) versus CGE Energy (OTCMKTS:CGEI) Critical Review

CGE Energy (OTCMKTS:CGEI) and Clearway Energy (NYSE:CWEN) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider & Institutional Ownership

48.9% of CGE Energy shares are held by institutional investors. Comparatively, 84.5% of Clearway Energy shares are held by institutional investors. 0.5% of Clearway Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CGE Energy and Clearway Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CGE Energy	N/A	N/A	N/A
Clearway Energy	5.78%	1.60%	0.55%

Analyst Recommendations

This is a summary of current ratings and recommmendations for CGE Energy and Clearway Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGE Energy	0	0	0	0	0.00
Clearway Energy	0	2	5	2	3.00

Clearway Energy has a consensus target price of $44.50, indicating a potential upside of 40.16%. Given Clearway Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Clearway Energy is more favorable than CGE Energy.

Earnings & Valuation

This table compares CGE Energy and Clearway Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGE Energy	N/A	N/A	N/A	N/A	N/A
Clearway Energy	$1.43 billion	4.56	$169.00 million	$0.76	41.78

Clearway Energy has higher revenue and earnings than CGE Energy.

Summary

Clearway Energy beats CGE Energy on 10 of the 10 factors compared between the two stocks.

About CGE Energy

CGE Energy Inc. develops and operates long-term energy projects for commercial, municipal, nonprofit, and international customers. The company installs LED lighting products and solar PVs; develops, designs, and constructs solar PV projects; and designs WINDe20 vertical-axis wind turbines. The company was founded in 1989 and is based in Brighton, Michigan.

About Clearway Energy

Clearway Energy, Inc. operates in the renewable energy business in the United States. The company operates through Conventional and Renewables segments. It has approximately 6,000 net MW of installed wind, solar, and energy generation projects; and approximately 2,500 net MW of natural gas-fired generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.