BKV (NYSE:BKV) & Clearway Energy (NYSE:CWEN) Critical Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearway Energy	$1.43 billion	5.91	$169.00 million	$0.04	1,028.60
BKV	$1.01 billion	2.88	$173.13 million	$3.30	8.06

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

Volatility and Risk

Clearway Energy has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

84.5% of Clearway Energy shares are held by institutional investors. 0.5% of Clearway Energy shares are held by insiders. Comparatively, 2.5% of BKV shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clearway Energy	0.13%	0.04%	0.01%
BKV	21.71%	6.43%	3.98%

Analyst Ratings

This is a summary of current ratings and price targets for Clearway Energy and BKV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearway Energy	0	3	5	1	2.78
BKV	1	1	7	1	2.80

Clearway Energy presently has a consensus target price of $43.00, suggesting a potential upside of 4.51%. BKV has a consensus target price of $34.50, suggesting a potential upside of 29.75%. Given BKV’s stronger consensus rating and higher possible upside, analysts plainly believe BKV is more favorable than Clearway Energy.

Summary

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

About Clearway Energy

Clearway Energy, Inc. operates in the renewable energy business in the United States. The company operates through Conventional and Renewables segments. It has approximately 6,000 net MW of installed wind, solar, and energy generation projects; and approximately 2,500 net MW of natural gas-fired generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.

About BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.