Capital Power (OTCMKTS:CPXWF) vs. Brookfield Renewable Partners (NYSE:BEP) Financial Analysis

Brookfield Renewable Partners (NYSE:BEP) and Capital Power (OTCMKTS:CPXWF) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares Brookfield Renewable Partners and Capital Power’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%
Capital Power	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Brookfield Renewable Partners and Capital Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable Partners	1	5	10	0	2.56
Capital Power	0	0	9	0	3.00

Brookfield Renewable Partners currently has a consensus target price of $37.79, indicating a potential upside of 10.22%. Given Brookfield Renewable Partners’ higher probable upside, research analysts plainly believe Brookfield Renewable Partners is more favorable than Capital Power.

Dividends

Brookfield Renewable Partners pays an annual dividend of $1.56 per share and has a dividend yield of 4.6%. Capital Power pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Brookfield Renewable Partners pays out -339.1% of its earnings in the form of a dividend. 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 has raised 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.

Valuation and Earnings

This table compares Brookfield Renewable Partners and Capital Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable Partners	$6.36 billion	1.62	$3.00 million	($0.46)	-74.52
Capital Power	N/A	N/A	N/A	$0.94	49.89

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.

Insider & Institutional Ownership

63.2% of Brookfield Renewable Partners shares are held by institutional investors. Comparatively, 29.4% of Capital Power shares are held 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 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.

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.