Brookfield Renewable (NYSE:BEPC) and Texas Pacific Land (NYSE:TPL) Head-To-Head Analysis

Texas Pacific Land (NYSE:TPL) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Risk & Volatility

Texas Pacific Land has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Texas Pacific Land and Brookfield Renewable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	2	1	0	2.00
Brookfield Renewable	1	1	3	0	2.40

Texas Pacific Land currently has a consensus price target of $639.00, suggesting a potential upside of 20.26%. Brookfield Renewable has a consensus price target of $40.00, suggesting a potential downside of 7.95%. Given Texas Pacific Land’s higher possible upside, research analysts clearly believe Texas Pacific Land is more favorable than Brookfield Renewable.

Valuation and Earnings

This table compares Texas Pacific Land and Brookfield Renewable”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$798.19 million	45.89	$481.38 million	$6.98	76.12
Brookfield Renewable	$3.73 billion	1.69	-$2.34 billion	($0.89)	-48.83

Texas Pacific Land has higher earnings, but lower revenue than Brookfield Renewable. Brookfield Renewable is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.

Dividends

Texas Pacific Land pays an annual dividend of $2.13 per share and has a dividend yield of 0.4%. Brookfield Renewable pays an annual dividend of $1.49 per share and has a dividend yield of 3.4%. Texas Pacific Land pays out 30.5% of its earnings in the form of a dividend. Brookfield Renewable pays out -167.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Pacific Land has increased its dividend for 3 consecutive years and Brookfield Renewable has increased its dividend for 1 consecutive years. Brookfield Renewable is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Texas Pacific Land and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	60.31%	36.18%	32.60%
Brookfield Renewable	-62.07%	-21.54%	-5.01%

Summary

Texas Pacific Land beats Brookfield Renewable on 10 of the 17 factors compared between the two stocks.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.