Edison International (NYSE:EIX – Get Free Report) and ReNew Energy Global (NASDAQ:RNW – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
89.0% of Edison International shares are held by institutional investors. Comparatively, 43.6% of ReNew Energy Global shares are held by institutional investors. 1.0% of Edison International shares are held by insiders. Comparatively, 8.7% of ReNew Energy Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Edison International and ReNew Energy Global, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Edison International | 1 | 3 | 8 | 0 | 2.58 |
| ReNew Energy Global | 0 | 1 | 3 | 0 | 2.75 |
Volatility & Risk
Edison International has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Valuation and Earnings
This table compares Edison International and ReNew Energy Global”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Edison International | $16.34 billion | 1.94 | $1.41 billion | $3.41 | 24.01 |
| ReNew Energy Global | $83.66 billion | 0.03 | $41.00 million | $0.06 | 118.17 |
Edison International has higher earnings, but lower revenue than ReNew Energy Global. Edison International is trading at a lower price-to-earnings ratio than ReNew Energy Global, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Edison International and ReNew Energy Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Edison International | 8.52% | 13.17% | 2.55% |
| ReNew Energy Global | 2.70% | 2.16% | 0.30% |
Summary
Edison International beats ReNew Energy Global on 8 of the 14 factors compared between the two stocks.
About Edison International
Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.
About ReNew Energy Global
ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.
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