Capital Power (OTCMKTS:CPXWF – Get Free Report) and Brookfield Renewable Partners (NYSE:BEP – Get Free Report) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Dividends
Capital Power pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Brookfield Renewable Partners pays an annual dividend of $1.57 per share and has a dividend yield of 4.8%. Capital Power pays out 136.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Renewable Partners pays out -341.3% of its earnings in the form of a dividend. Brookfield Renewable Partners has increased 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.
Analyst Recommendations
This is a summary of current ratings and price targets for Capital Power and Brookfield Renewable Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital Power | 0 | 0 | 9 | 0 | 3.00 |
| Brookfield Renewable Partners | 1 | 5 | 10 | 0 | 2.56 |
Profitability
This table compares Capital Power and Brookfield Renewable Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital Power | N/A | N/A | N/A |
| Brookfield Renewable Partners | 4.50% | 0.84% | 0.29% |
Valuation and Earnings
This table compares Capital Power and Brookfield Renewable Partners”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital Power | N/A | N/A | N/A | $0.94 | 49.00 |
| Brookfield Renewable Partners | $6.41 billion | 1.53 | $3.00 million | ($0.46) | -71.10 |
Brookfield Renewable Partners has higher revenue and earnings than Capital Power. Brookfield Renewable Partners is trading at a lower price-to-earnings ratio than Capital Power, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
29.4% of Capital Power shares are owned by institutional investors. Comparatively, 63.2% of Brookfield Renewable Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Brookfield Renewable Partners beats Capital Power on 10 of the 13 factors compared between the two stocks.
About Capital Power
Capital Power Corporation develops, acquires, owns, and operates renewable and thermal power generation facilities in Canada and the United States. It generates electricity from various energy sources, including wind, solar, waste heat, natural gas, and coal. The company owns an approximately 7,500 megawatts (MW) of power generation capacity at 29 facilities. It also manages its related electricity and natural gas portfolios by undertaking trading and marketing activities. In addition, the company engages in the development of projects, which include approximately 213 MW of renewable generation capacity in Alberta and North Carolina, 512 MW of natural gas in Alberta, and approximately 350 MW of natural gas and battery energy storage systems in Ontario. Capital Power Corporation was founded in 1891 and is headquartered in Edmonton, Canada.
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.
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