Adani Power vs Adani Green Energy Which Is Superior?

Adani Power and Adani Green Energy are two companies under the Adani Group, a major conglomerate in India. Adani Power primarily focuses on thermal power generation, while Adani Green Energy is a leading player in the renewable energy sector. Both stocks have seen significant growth in recent years, with Adani Green Energy outperforming Adani Power due to increasing demand for clean energy solutions. Investors looking to capitalize on the global shift towards renewable energy may find Adani Green Energy a more attractive investment option compared to Adani Power.

Adani Power or Adani Green Energy?

When comparing Adani Power and Adani Green Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Adani Power and Adani Green Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Adani Power has a dividend yield of -%, while Adani Green Energy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Adani Power reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Adani Green Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Adani Power P/E ratio at 17.22 and Adani Green Energy's P/E ratio at 191.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Adani Power P/B ratio is 3.92 while Adani Green Energy's P/B ratio is 20.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Adani Power has seen a 5-year revenue growth of 1.11%, while Adani Green Energy's is 3.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Adani Power's ROE at 27.84% and Adani Green Energy's ROE at 9.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹513.50 for Adani Power and ₹1124.20 for Adani Green Energy. Over the past year, Adani Power's prices ranged from ₹432.00 to ₹895.85, with a yearly change of 107.37%. Adani Green Energy's prices fluctuated between ₹870.25 and ₹2174.10, with a yearly change of 149.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.