CMS Energy (NYSE:CMS) & China Resources Power (OTCMKTS:CRPJY) Critical Survey

CMS Energy (NYSE:CMS) and China Resources Power (OTCMKTS:CRPJY) are both large-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

93.6% of CMS Energy shares are held by institutional investors. 0.4% of CMS Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares CMS Energy and China Resources Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMS Energy	$8.54 billion	2.81	$1.07 billion	$3.53	22.16
China Resources Power	$13.49 billion	0.91	$1.84 billion	N/A	N/A

China Resources Power has higher revenue and earnings than CMS Energy.

Profitability

This table compares CMS Energy and China Resources Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CMS Energy	12.54%	12.09%	2.87%
China Resources Power	N/A	N/A	N/A

Dividends

CMS Energy pays an annual dividend of $2.28 per share and has a dividend yield of 2.9%. China Resources Power pays an annual dividend of $1.23 per share and has a dividend yield of 3.5%. CMS Energy pays out 64.6% of its earnings in the form of a dividend. CMS Energy has increased its dividend for 3 consecutive years.

Risk & Volatility

CMS Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, China Resources Power has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for CMS Energy and China Resources Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMS Energy	0	6	8	0	2.57
China Resources Power	1	0	1	0	2.00

CMS Energy presently has a consensus target price of $79.38, suggesting a potential upside of 1.50%. Given CMS Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe CMS Energy is more favorable than China Resources Power.

Summary

CMS Energy beats China Resources Power on 10 of the 15 factors compared between the two stocks.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.

About China Resources Power

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects. As of December 31, 2022, the company had 42 coal-fired power plants, 159 wind farms, 38 photovoltaic power plants, 2 hydroelectric plants, and 5 gas-fired plants with total attributable operational generation capacity of 52,581 MW. It also engages in coal mining and marketing activities; and undertakes combined generation of heat and power, coal-electricity integration, and other projects. In addition, the company is involved in the distribution of energy, power sale, intelligent energy, coal mining, and other areas; and distribution network construction and operation, distributed energy resource, and other businesses. The company was incorporated in 2001 and is based in Wan Chai, Hong Kong. China Resources Power Holdings Company Limited operates as a subsidiary of CRH (Power) Limited.