CENTRICA PLC/S (OTCMKTS:CPYYY) and Clearway Energy (NYSE:CWEN) are both mid-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Risk and Volatility
CENTRICA PLC/S has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Insider & Institutional Ownership
0.2% of CENTRICA PLC/S shares are owned by institutional investors. Comparatively, 33.2% of Clearway Energy shares are owned by institutional investors. 0.2% of Clearway Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for CENTRICA PLC/S and Clearway Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CENTRICA PLC/S | 1 | 7 | 3 | 0 | 2.18 |
| Clearway Energy | 1 | 3 | 1 | 0 | 2.00 |
Clearway Energy has a consensus target price of $14.67, indicating a potential downside of 31.17%. Given Clearway Energy’s higher probable upside, analysts clearly believe Clearway Energy is more favorable than CENTRICA PLC/S.
Dividends
CENTRICA PLC/S pays an annual dividend of $0.14 per share and has a dividend yield of 3.2%. Clearway Energy pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. CENTRICA PLC/S pays out 23.7% of its earnings in the form of a dividend. Clearway Energy pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares CENTRICA PLC/S and Clearway Energy’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CENTRICA PLC/S | $39.62 billion | 0.16 | $244.27 million | $0.59 | 7.47 |
| Clearway Energy | $1.05 billion | 3.91 | $52.00 million | $0.46 | 46.33 |
CENTRICA PLC/S has higher revenue and earnings than Clearway Energy. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than Clearway Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CENTRICA PLC/S and Clearway Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CENTRICA PLC/S | N/A | N/A | N/A |
| Clearway Energy | -7.11% | -3.45% | -0.85% |
Summary
CENTRICA PLC/S beats Clearway Energy on 10 of the 16 factors compared between the two stocks.
CENTRICA PLC/S Company Profile
Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Exploration & Production segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.
Clearway Energy Company Profile
Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable energy and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2018, it had contracted generation portfolio of 5,272 net megawatts (MWs) of wind, solar, and natural gas-fired power generation facilities, as well as district energy systems. The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,385 net MW thermal equivalents; and electric generation capacity of 133 net MWs. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.
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