TerraForm Power (NASDAQ: TERP) is a global renewable energy company that has made the news recently with talks of a possible merger with Pattern Energy Group (NASDAQ: PEGI). Not all energy companies are created the same, and I'll compare Terraform Power with two of its competitors: Canadian Solar (NASDAQ: CSIQ) and American Electric Power (NYSE: AEP).
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Founded in 2001, Canadian Solar manufactures solar panels and generates and sells energy from solar projects throughout the world. There are three reasons why I would stay away from this stock.