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HTO vs RNW

HTO
H2O America
BEARISH
Price
$59.67
Market Cap
$2.5B
Sector
Utilities
AI Confidence
85%
RNW
ReNew Energy Global Plc
NEUTRAL
Price
$4.99
Market Cap
$1.82B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
HTO
20.43
RNW
13.86
Forward P/E
HTO
21.08
RNW
17.61
P/B Ratio
HTO
1.4
RNW
1.37
P/S Ratio
HTO
3.12
RNW
0.01
EV/EBITDA
HTO
13.36
RNW
8.03

Profitability

Gross Margin
HTO
57.03%
RNW
83.77%
Operating Margin
HTO
19.69%
RNW
38.05%
Profit Margin
HTO
12.81%
RNW
9.25%
ROE
HTO
7.06%
RNW
9.51%
ROA
HTO
2.39%
RNW
3.97%

Growth

Revenue Growth
HTO
-1.8%
RNW
36.1%
Earnings Growth
HTO
-34.4%
RNW
--

Financial Health

Debt/Equity
HTO
1.28
RNW
5.46
Current Ratio
HTO
0.7
RNW
0.57
Quick Ratio
HTO
0.59
RNW
0.39

Dividends

Dividend Yield
HTO
2.95%
RNW
--
Payout Ratio
HTO
57.53%
RNW
0.0%

AI Verdict

HTO BEARISH

HTO presents a concerning divergence between its market price and fundamental performance. While the Piotroski F-Score of 6/9 indicates stable financial health, the company is suffering from severe growth decay with YoY earnings plummeting by 34.40% and revenue contracting. The stock is currently trading near its 52-week high ($59.67) despite being significantly overvalued relative to its intrinsic value ($20.44) and slightly above its Graham Number ($52.94). With bearish insider sentiment and poor liquidity ratios, the current valuation appears unsustainable.

Strengths
Stable Piotroski F-Score (6/9) indicating baseline operational health
Profit margins (12.81%) and ROE (7.06%) outperform sector averages
Debt/Equity ratio (1.28) is lower than the utility sector average (1.70)
Risks
Severe earnings contraction (-34.40% YoY) and negative revenue growth
Poor short-term liquidity with a Current Ratio of 0.70 and Quick Ratio of 0.59
Significant valuation gap between current price and growth-based intrinsic value
RNW NEUTRAL

RNW presents a complex profile with a stable Piotroski F-Score of 6/9, but severe balance sheet vulnerabilities. While the stock trades below its Graham Number ($5.43) and exhibits a very attractive P/E ratio relative to the utilities sector, its Debt/Equity ratio of 5.46 and a Current Ratio of 0.57 indicate significant leverage and liquidity risks. Strong revenue growth (36.10%) and high operating margins are offset by extreme earnings volatility and a bearish technical trend. The valuation appears cheap, but the risk premium is justified by the financial instability.

Strengths
Strong revenue growth of 36.10% YoY
High operating margin (38.05%) and gross margin (83.77%)
P/E ratio (13.86) is significantly lower than the sector average (27.63)
Risks
Extreme leverage with a Debt/Equity ratio of 5.46
Poor short-term liquidity (Current Ratio 0.57, Quick Ratio 0.39)
High earnings volatility with frequent swings between large losses and gains

Compare Another Pair

HTO vs RNW: Head-to-Head Comparison

This page compares H2O America (HTO) and ReNew Energy Global Plc (RNW) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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