CEMIG (NYSE:CIG) vs. Tenaga Nasional Berhad (OTCMKTS:TNABY) Financial Analysis

Tenaga Nasional Berhad (OTCMKTS:TNABY) and CEMIG (NYSE:CIG) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Dividends

Tenaga Nasional Berhad pays an annual dividend of $0.41 per share and has a dividend yield of 2.9%. CEMIG pays an annual dividend of $0.14 per share and has a dividend yield of 7.3%. CEMIG pays out 26.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Tenaga Nasional Berhad and CEMIG”s top-line 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	1.76	$788.25 million	N/A	N/A
CEMIG	$7.38 billion	0.75	$1.15 billion	$0.54	3.60

CEMIG has lower revenue, but higher earnings than Tenaga Nasional Berhad.

Volatility and Risk

Tenaga Nasional Berhad has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, CEMIG has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenaga Nasional Berhad	N/A	N/A	N/A
CEMIG	20.43%	20.41%	9.21%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tenaga Nasional Berhad and CEMIG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaga Nasional Berhad	0	0	0	0	0.00
CEMIG	0	3	0	0	2.00

Summary

CEMIG beats Tenaga Nasional Berhad on 7 of the 10 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 CEMIG

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.