Clearway Energy (NYSE:CWEN) and Hallador Energy (NASDAQ:HNRG) Financial Analysis

Hallador Energy (NASDAQ:HNRG) and Clearway Energy (NYSE:CWEN) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Hallador Energy has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

61.4% of Hallador Energy shares are held by institutional investors. Comparatively, 84.5% of Clearway Energy shares are held by institutional investors. 17.4% of Hallador Energy shares are held by insiders. Comparatively, 0.5% of Clearway Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Hallador Energy and Clearway Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hallador Energy	-6.73%	-13.34%	-4.44%
Clearway Energy	-5.64%	-1.66%	-0.55%

Earnings and Valuation

This table compares Hallador Energy and Clearway Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hallador Energy	$469.47 million	1.11	$41.87 million	$0.02	553.90
Clearway Energy	$1.43 billion	4.91	$169.00 million	($0.82)	-41.71

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Hallador Energy and Clearway Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hallador Energy	2	0	2	2	2.67
Clearway Energy	1	0	7	2	3.00

Hallador Energy presently has a consensus price target of $23.83, suggesting a potential upside of 115.14%. Clearway Energy has a consensus price target of $42.00, suggesting a potential upside of 22.81%. Given Hallador Energy’s higher possible upside, analysts clearly believe Hallador Energy is more favorable than Clearway Energy.

Summary

Clearway Energy beats Hallador Energy on 10 of the 14 factors compared between the two stocks.

About Hallador Energy

Hallador Energy Company is an Indiana-based energy company focused on coal mining and electric power generation. Through its subsidiary Sunrise Coal, it operates underground coal mines in Indiana’s Illinois Basin and supplies thermal coal primarily to electric utilities. Hallador also participates in wholesale electricity markets through Hallador Power, which owns and operates the Merom Generating Station in Sullivan County, Indiana. The plant’s output serves the regional power market. The company’s operations are concentrated in the Midwestern United States, combining coal production with power generation and sales.

About Clearway Energy

Clearway Energy, Inc. owns and operates electricity-generation facilities in the United States. Its portfolio includes renewable energy assets, primarily wind and solar, as well as energy storage and conventional power-generation and thermal infrastructure. The company sells electricity and related services to utilities and other customers, often through long-term contractual arrangements. Its facilities are located across multiple U.S. regions. Clearway Energy was formerly known as NRG Yield, Inc. and adopted its current name in 2018.