Reviewing Brookfield Renewable (NYSE:BEPC) and Diversified Energy (NYSE:DEC)

Diversified Energy (NYSE:DEC) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.4%. Brookfield Renewable pays an annual dividend of $1.49 per share and has a dividend yield of 3.9%. Diversified Energy pays out 78.9% 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 pays out -167.4% of its earnings in the form of a dividend. Brookfield Renewable has increased its dividend for 1 consecutive years.

Risk and Volatility

Diversified Energy has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	9.34
Brookfield Renewable	$5.88 billion	0.94	$236.00 million	($0.89)	-42.89

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

Profitability

This table compares Diversified Energy and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Brookfield Renewable	-34.58%	-12.74%	-3.20%

Insider and Institutional Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Diversified Energy and Brookfield Renewable, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	6	0	2.71
Brookfield Renewable	1	1	3	0	2.40

Diversified Energy presently has a consensus target price of $22.20, suggesting a potential upside of 61.69%. Brookfield Renewable has a consensus target price of $39.75, suggesting a potential upside of 4.14%. Given Diversified Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Diversified Energy is more favorable than Brookfield Renewable.

Summary

Diversified Energy beats Brookfield Renewable on 9 of the 15 factors compared between the two stocks.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.