Head-To-Head Comparison: Tenaga Nasional Berhad (OTCMKTS:TNABY) versus Edison International (NYSE:EIX)

Tenaga Nasional Berhad (OTCMKTS:TNABY) and Edison International (NYSE:EIX) are both large-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

88.9% of Edison International shares are held by institutional investors. 1.0% of Edison International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tenaga Nasional Berhad and Edison International’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaga Nasional Berhad	$11.58 billion	1.47	$788.25 million	N/A	N/A
Edison International	$16.45 billion	1.68	$1.41 billion	$2.28	31.50

Edison International has higher revenue and earnings than Tenaga Nasional Berhad.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tenaga Nasional Berhad and Edison International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaga Nasional Berhad	0	0	0	0	N/A
Edison International	1	4	6	0	2.45

Edison International has a consensus target price of $77.40, indicating a potential upside of 7.75%. Given Edison International’s higher possible upside, analysts clearly believe Edison International is more favorable than Tenaga Nasional Berhad.

Risk & Volatility

Tenaga Nasional Berhad has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, Edison International has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Dividends

Tenaga Nasional Berhad pays an annual dividend of $0.41 per share and has a dividend yield of 3.5%. Edison International pays an annual dividend of $3.12 per share and has a dividend yield of 4.3%. Edison International pays out 136.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Edison International has raised its dividend for 21 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Tenaga Nasional Berhad and Edison International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenaga Nasional Berhad	5.77%	4.93%	1.47%
Edison International	6.14%	12.48%	2.44%

Summary

Edison International beats Tenaga Nasional Berhad on 13 of the 14 factors compared between the two stocks.

About Tenaga Nasional Berhad

Tenaga Nasional Berhad engages in the generation, transmission, distribution, and sale of electricity in Malaysia and internationally. The company operates and maintains thermal generation facilities and hydroelectric power generating schemes; and manages and operates the National Grid that is connected to Thailand's transmission system, as well as Singapore's transmission system at Senoko. It also supplies fuel and coal for power generation; generates, distributes, supplies, deals in, and sells various energy sources, as well as provides related technical services; develops district cooling systems; operates and maintains co-generation works; manufactures, sells, and repairs distribution, power, and earthing transformers; and develops, owns, and manages dry bulk terminals. In addition, the company provides turnkey contracting of transmission substations; repair and maintenance services to heavy industries and other related services; operation and maintenance services on telecommunication equipment and data centres; higher education, and telecommunication and IT infrastructure solution and services; research and development services in the areas of engineering, information technology, business, accountancy, and liberal studies; and training courses. Further, it offers insurance and reinsurance products, technical and laboratory, consultancy, and other services; manufactures and distributes power and general cables, and aluminum rods; operates an integrated district cooling systems for air conditioning systems of office buildings; assembles, manufactures, tests, reconditions, and distributes high and medium voltage switchgears, and control gears for transmission and distribution of electric power; and operates wind assets. It primarily serves commercial, industrial, and residential customers. The company was founded in 1949 and is headquartered in Kuala Lumpur, Malaysia.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.