Head-To-Head Review: Azure Power (AZRE) vs. Its Rivals

Azure Power (NYSE: AZRE) is one of 69 public companies in the “Electric services” industry, but how does it weigh in compared to its peers? We will compare Azure Power to similar companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

42.1% of Azure Power shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 3.5% of shares of all “Electric services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.



Earnings & Valuation

This table compares Azure Power and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Azure Power $64.50 million -$18.08 million -8.70
Azure Power Competitors $8.48 billion $470.03 million 10.63

Azure Power’s peers have higher revenue and earnings than Azure Power. Azure Power is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for Azure Power and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power 0 0 1 0 3.00
Azure Power Competitors 430 2343 2028 57 2.35

Azure Power presently has a consensus target price of $22.00, suggesting a potential upside of 47.06%. As a group, “Electric services” companies have a potential upside of 10.58%. Given Azure Power’s stronger consensus rating and higher possible upside, analysts clearly believe Azure Power is more favorable than its peers.

Profitability

This table compares Azure Power and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azure Power -19.14% -10.40% -2.20%
Azure Power Competitors -23.03% 4.40% -0.42%

Risk and Volatility

Azure Power has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Azure Power’s peers have a beta of 0.03, meaning that their average stock price is 97% less volatile than the S&P 500.

Summary

Azure Power peers beat Azure Power on 7 of the 12 factors compared.

About Azure Power

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government entities, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2017, it had an installed capacity of 12.2 gigawatts. The company was founded in 2007 and is based in New Delhi, India.

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