Critical Review: Hallador Energy (NASDAQ:HNRG) and Brookfield Renewable (NYSE:BEPC)

Brookfield Renewable (NYSE:BEPCGet Free Report) and Hallador Energy (NASDAQ:HNRGGet Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Brookfield Renewable and Hallador Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Renewable 0 1 1 0 2.50
Hallador Energy 0 0 1 0 3.00

Brookfield Renewable currently has a consensus target price of $34.00, suggesting a potential upside of 11.15%. Hallador Energy has a consensus target price of $9.00, suggesting a potential downside of 9.37%. Given Brookfield Renewable’s higher possible upside, equities research analysts plainly believe Brookfield Renewable is more favorable than Hallador Energy.

Dividends

Brookfield Renewable pays an annual dividend of $1.42 per share and has a dividend yield of 4.6%. Hallador Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Brookfield Renewable pays out -308.7% of its earnings in the form of a dividend. Hallador Energy pays out 27.1% 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. Brookfield Renewable is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Brookfield Renewable and Hallador Energy”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Renewable $4.11 billion 1.34 -$181.00 million ($0.46) -66.50
Hallador Energy $485.54 million 0.76 $44.79 million $0.59 16.83

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

Profitability

This table compares Brookfield Renewable and Hallador Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Renewable 2.37% 0.79% 0.29%
Hallador Energy -1.25% -1.48% -0.72%

Risk and Volatility

Brookfield Renewable has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Hallador Energy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 61.4% of Hallador Energy shares are owned by institutional investors. 32.3% of Hallador Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Brookfield Renewable beats Hallador Energy on 10 of the 15 factors compared between the two stocks.

About Brookfield Renewable

(Get Free Report)

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.

About Hallador Energy

(Get Free Report)

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.

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