Critical Analysis: Huaneng Power International (OTCMKTS:HUNGF) versus Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and Huaneng Power International (OTCMKTS:HUNGF) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Enlight Renewable Energy and Huaneng Power International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$678.87 million	14.92	$132.10 million	$0.62	137.81
Huaneng Power International	N/A	N/A	N/A	$0.80	0.92

Enlight Renewable Energy has higher revenue and earnings than Huaneng Power International. Huaneng Power International is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Enlight Renewable Energy and Huaneng Power International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	2	2	3	1	2.38
Huaneng Power International	0	0	0	0	0.00

Enlight Renewable Energy presently has a consensus price target of $75.00, indicating a potential downside of 12.22%. Given Enlight Renewable Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Enlight Renewable Energy is more favorable than Huaneng Power International.

Insider & Institutional Ownership

38.9% of Enlight Renewable Energy shares are owned by institutional investors. Comparatively, 6.9% of Huaneng Power International shares are owned by institutional investors. 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.

Profitability

This table compares Enlight Renewable Energy and Huaneng Power International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	12.35%	3.52%	0.86%
Huaneng Power International	N/A	N/A	N/A

Summary

Enlight Renewable Energy beats Huaneng Power International on 10 of the 11 factors compared between the two stocks.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

About Huaneng Power International

Huaneng Power International, Inc., together with its subsidiaries, generates and sells electric power to the regional or provincial grid companies in the People's Republic of China and internationally. It develops, constructs, operates, and manages power plants and related projects. The company generates power from gas turbine, hydro, wind, photovoltaic, coal-fired, and biomass resources. It is also involved in the sale of coal ash and lime; cargo loading and storage; port, warehousing, and conveying activities; and provision of thermal energy and cold energy services, as well as thermal heating services. In addition, the company engages in the repair and maintenance of power equipment; supply of steam and hot water; plumbing pipe installation and repair; and energy engineering construction activities. Further, it involved in the provision of transportation services; construction and operation of electricity distribution networks and heating pipe networks; energy supply, energy transmission, and substation project contracting activities; cargo handling and transportation; and port management, investment, and development activities. Additionally, the company engages in the management of industrial water and waste, as well as provides environment engineering, and information technology and management consulting services.It also sells raw and processed coal; and offers central heat and desalinated water services. As of December 31, 2022, the company had a controlled installed capacity of 127,228 megawatts and low carbon clean energy installed capacity of 33,171 MW. Huaneng Power International, Inc. was incorporated in 1994 and is based in Beijing, the People's Republic of China.