Sky Solar Holdings (SKYS) & Brookfield Renewable Partners L.P. (BEP) Critical Comparison

Sky Solar Holdings (NASDAQ: SKYS) and Brookfield Renewable Partners L.P. (NYSE:BEP) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Sky Solar Holdings and Brookfield Renewable Partners L.P., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sky Solar Holdings	0	1	0	0	2.00
Brookfield Renewable Partners L.P.	0	7	3	0	2.30

Sky Solar Holdings presently has a consensus target price of $1.30, indicating a potential downside of 3.70%. Brookfield Renewable Partners L.P. has a consensus target price of $35.81, indicating a potential upside of 5.45%. Given Brookfield Renewable Partners L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield Renewable Partners L.P. is more favorable than Sky Solar Holdings.

Dividends

Brookfield Renewable Partners L.P. pays an annual dividend of $1.87 per share and has a dividend yield of 5.5%. Sky Solar Holdings does not pay a dividend. Sky Solar Holdings has raised its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Sky Solar Holdings and Brookfield Renewable Partners L.P.’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Sky Solar Holdings	$65.93 million	1.07	$19.01 million	$0.07	19.29
Brookfield Renewable Partners L.P.	$2.51 billion	4.01	$1.44 billion	N/A	N/A

Brookfield Renewable Partners L.P. has higher revenue and earnings than Sky Solar Holdings.

Profitability

This table compares Sky Solar Holdings and Brookfield Renewable Partners L.P.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sky Solar Holdings	4.72%	-2.47%	-0.70%
Brookfield Renewable Partners L.P.	2.82%	0.76%	0.33%

Volatility & Risk

Sky Solar Holdings has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Brookfield Renewable Partners L.P. has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of Sky Solar Holdings shares are owned by institutional investors. Comparatively, 54.3% of Brookfield Renewable Partners L.P. shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Brookfield Renewable Partners L.P. beats Sky Solar Holdings on 10 of the 13 factors compared between the two stocks.

Sky Solar Holdings Company Profile

Sky Solar Holdings, Ltd. is an investment holding company. The Company is an independent power producer (IPP) engaged in developing, owning and operating solar parks. The Company focuses on the downstream solar market and develops projects primarily in Asia, South America, Europe and North America. Its subsidiaries are engaged in activities, such as selling electricity generated from solar parks owned by the Company as IPP; pipeline (including obtaining permits required for solar power projects and sourcing of solar modules), and providing engineering, procurement and construction (EPC) services ; providing operating and maintenance (O&M) services for solar parks; sales of solar modules, and building and transferring of solar parks (BT). The Company has developed over 270 solar parks with an aggregate capacity of approximately 252.8 megawatts (MW). It has over 1.3 gigawatts (GW) of solar projects in various stages of development in countries, such as Chile, Uruguay, Japan and Canada.

Brookfield Renewable Partners L.P. Company Profile

Brookfield Renewable Partners L.P., formerly Brookfield Renewable Energy Partners L.P., is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. Its segments include Hydroelectric, Wind, Other and Corporate. It operates renewable power generating assets, which include conventional hydroelectric facilities and wind facilities located in North America, Colombia, Brazil and Europe. It also operates approximately four biomass facilities and three Co-gen facilities. It owns approximately 10,730 megawatts (MW) of installed capacity and an over 6,000 MW development pipeline diversified across 15 power markets in North America, Colombia, Brazil and Europe. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.