Head to Head Analysis: Meren Energy (OTCMKTS:AOIFF) and Brookfield Renewable (NYSE:BEPC)

Meren Energy (OTCMKTS:AOIFF) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

Meren Energy has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Meren Energy	N/A	3.52%	1.68%
Brookfield Renewable	-62.40%	-24.65%	-4.95%

Institutional and Insider Ownership

75.1% of Brookfield Renewable shares are held by institutional investors. 1.0% of Meren Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Meren Energy and Brookfield Renewable”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meren Energy	N/A	N/A	-$279.10 million	($0.52)	-2.50
Brookfield Renewable	$3.73 billion	1.43	-$2.34 billion	N/A	N/A

Meren Energy has higher earnings, but lower revenue than Brookfield Renewable.

Dividends

Meren Energy pays an annual dividend of $0.14 per share and has a dividend yield of 10.8%. Brookfield Renewable pays an annual dividend of $1.57 per share and has a dividend yield of 4.4%. Meren Energy pays out -26.9% of its earnings in the form of a dividend. Brookfield Renewable has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Meren Energy and Brookfield Renewable, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meren Energy	0	0	0	0	0.00
Brookfield Renewable	2	1	1	0	1.75

Brookfield Renewable has a consensus price target of $42.33, indicating a potential upside of 18.87%. Given Brookfield Renewable’s stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Renewable is more favorable than Meren Energy.

About Meren Energy

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.

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.