Contrasting Siemens Energy (OTCMKTS:SMNEY) & Brookfield Renewable Partners (NYSE:BEP)

Brookfield Renewable Partners (NYSE:BEP – Get Free Report) and Siemens Energy (OTCMKTS:SMNEY – Get Free Report) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Insider and Institutional Ownership

63.2% of Brookfield Renewable Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Brookfield Renewable Partners and Siemens Energy’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%
Siemens Energy 4.75% 18.48% 3.50%

Dividends

Brookfield Renewable Partners pays an annual dividend of $1.57 per share and has a dividend yield of 5.5%. Siemens Energy pays an annual dividend of $0.53 per share and has a dividend yield of 0.4%. Brookfield Renewable Partners pays out -341.3% of its earnings in the form of a dividend. Siemens Energy pays out 21.7% 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 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 Ratings

This is a summary of recent ratings for Brookfield Renewable Partners and Siemens Energy, 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
Siemens Energy 0 3 7 0 2.70

Brookfield Renewable Partners currently has a consensus price target of $37.79, indicating a potential upside of 33.34%. Given Brookfield Renewable Partners’ higher probable upside, research analysts clearly believe Brookfield Renewable Partners is more favorable than Siemens Energy.

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, Siemens Energy has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.

Earnings & Valuation

This table compares Brookfield Renewable Partners and Siemens Energy”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Renewable Partners $6.41 billion 1.33 $3.00 million ($0.46) -61.60
Siemens Energy $43.21 billion 2.47 $1.56 billion $2.44 51.07

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

Summary

Siemens Energy beats Brookfield Renewable Partners on 10 of the 16 factors compared between the two stocks.

About Brookfield Renewable Partners

(Get Free Report)

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 Siemens Energy

(Get Free Report)

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

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