Clearway Energy (NYSE:CWEN) versus BKV (NYSE:BKV) Financial Analysis

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for BKV and Clearway Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BKV	1	0	9	1	2.91
Clearway Energy	0	3	5	1	2.78

BKV presently has a consensus target price of $33.56, indicating a potential upside of 18.51%. Clearway Energy has a consensus target price of $40.57, indicating a potential upside of 4.17%. Given BKV’s stronger consensus rating and higher probable upside, research analysts plainly believe BKV is more favorable than Clearway Energy.

Institutional and Insider Ownership

84.5% of Clearway Energy shares are owned by institutional investors. 2.5% of BKV shares are owned by insiders. Comparatively, 0.5% 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 is poised for long-term growth.

Valuation and Earnings

This table compares BKV 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
BKV	$1.01 billion	3.07	$173.13 million	$3.30	8.58
Clearway Energy	$1.43 billion	5.59	$169.00 million	$0.04	973.65

BKV has higher earnings, but lower revenue 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

BKV has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Clearway Energy has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

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

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

Summary

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

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.

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.