Are These 2 Renewable Energy Stocks Overpriced Right Now?

Investment in clean energy fell 8% from 2017 to $332.1 billion last year. This was still the fifth year in a row in which investment exceeded $300 billion worldwide. Solar took the biggest hit in 2018 as overall investment dropped 24% to $130.8 billion. This was in large part due to declining capital costs in the sector.

Renewable energy investment dropped 34% year-over-year to $2.2 billion in 2018. Today we are going to take a snapshot of 2 renewable energy stocks that have surged in 2019. Are these stocks overvalued in April?

TransAlta Renewables (TSX:RNW) is a Calgary-based company that operates in a North American gas and renewables segment and an Australian gas division. Shares have climbed 30.5% in 2019 as of early afternoon trading on April 1. The company expects its comparable EBITDA to drop to a range from $400 million to $420 million compared to $430 million in 2018. TransAlta still offers a strong monthly dividend of $0.07833 per share.

Innergex Renewable (TSX:INE) is a Quebec-based renewable power producer. Shares have climbed 12.2% in 2019 so far. Revenues rose 44% from 2017 to $576.6 million and adjusted EBITDA climbed 29% to $385.1 million. The board of directors increased its dividend 3% to $0.70 per share. This represents a 4.8% yield.

TransAlta stock had an RSI of 78 as of early afternoon trading on April 1. This puts it firms in overbought territory. Innergex, on the other hand, boasts an RSI of 43 which puts it closer to neutral territory. Its 2018 results were fantastic, and apart from an inferior dividend payout it looks like the better buy today.