TA vs. BEP.UN, CPX, BEPC, CU, BIPC, AQN, NPI, ACO.X, BLX, and RNW
Should you be buying TransAlta stock or one of its competitors? The main competitors of TransAlta include Brookfield Renewable Partners (BEP.UN), Capital Power (CPX), Brookfield Renewable (BEPC), Canadian Utilities (CU), Brookfield Infrastructure (BIPC), Algonquin Power & Utilities (AQN), Northland Power (NPI), ATCO (ACO.X), Boralex (BLX), and TransAlta Renewables (RNW). These companies are all part of the "utilities" sector.
Brookfield Renewable Partners (TSE:BEP.UN) and TransAlta (TSE:TA) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, media sentiment, community ranking, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
TransAlta received 34 more outperform votes than Brookfield Renewable Partners when rated by MarketBeat users. However, 60.94% of users gave Brookfield Renewable Partners an outperform vote while only 53.21% of users gave TransAlta an outperform vote.
Brookfield Renewable Partners pays an annual dividend of C$1.94 per share and has a dividend yield of 5.1%. TransAlta pays an annual dividend of C$0.24 per share and has a dividend yield of 2.4%. Brookfield Renewable Partners pays out -307.9% of its earnings in the form of a dividend. TransAlta pays out 12.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
67.4% of Brookfield Renewable Partners shares are held by institutional investors. Comparatively, 67.3% of TransAlta shares are held by institutional investors. 0.2% of TransAlta shares are held by insiders. 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.
TransAlta has a net margin of 19.39% compared to TransAlta's net margin of -2.25%. Brookfield Renewable Partners' return on equity of 33.61% beat TransAlta's return on equity.
Brookfield Renewable Partners presently has a consensus price target of C$38.00, suggesting a potential upside of 0.80%. TransAlta has a consensus price target of C$15.22, suggesting a potential upside of 54.70%. Given Brookfield Renewable Partners' stronger consensus rating and higher probable upside, analysts clearly believe TransAlta is more favorable than Brookfield Renewable Partners.
TransAlta has lower revenue, but higher earnings than Brookfield Renewable Partners. Brookfield Renewable Partners is trading at a lower price-to-earnings ratio than TransAlta, indicating that it is currently the more affordable of the two stocks.
Brookfield Renewable Partners has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, TransAlta has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
In the previous week, Brookfield Renewable Partners had 2 more articles in the media than TransAlta. MarketBeat recorded 4 mentions for Brookfield Renewable Partners and 2 mentions for TransAlta. TransAlta's average media sentiment score of 0.82 beat Brookfield Renewable Partners' score of 0.31 indicating that Brookfield Renewable Partners is being referred to more favorably in the media.
Summary
TransAlta beats Brookfield Renewable Partners on 13 of the 21 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding TA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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