Entergy (NYSE:ETR) & Tenaga Nasional Bhd (NYSE:TNABY) Head-To-Head Analysis

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

Risk & Volatility

Entergy has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Tenaga Nasional Bhd has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Entergy 11.95% 11.36% 2.23%
Tenaga Nasional Bhd 7.69% 6.52% 2.11%

Institutional & Insider Ownership

85.7% of Entergy shares are owned by institutional investors. Comparatively, 0.0% of Tenaga Nasional Bhd shares are owned by institutional investors. 0.3% of Entergy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Entergy pays an annual dividend of $3.72 per share and has a dividend yield of 3.8%. Tenaga Nasional Bhd pays an annual dividend of $0.26 per share and has a dividend yield of 2.5%. Entergy pays out 68.9% of its earnings in the form of a dividend. Entergy has raised its dividend for 5 consecutive years. Entergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Entergy and Tenaga Nasional Bhd’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entergy $10.88 billion 1.78 $1.26 billion $5.40 17.93
Tenaga Nasional Bhd $12.30 billion 1.22 $1.09 billion N/A N/A

Entergy has higher earnings, but lower revenue than Tenaga Nasional Bhd.

Analyst Recommendations

This is a summary of recent recommendations for Entergy and Tenaga Nasional Bhd, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entergy 0 3 10 0 2.77
Tenaga Nasional Bhd 0 0 0 0 N/A

Entergy presently has a consensus target price of $116.46, indicating a potential upside of 20.26%. Given Entergy’s higher probable upside, analysts clearly believe Entergy is more favorable than Tenaga Nasional Bhd.

Summary

Entergy beats Tenaga Nasional Bhd on 12 of the 14 factors compared between the two stocks.

About Entergy

Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It generates electricity through gas/oil, nuclear, coal, hydro, and solar power sources. The company's Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and distributes natural gas. Its Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and owning interests in non-nuclear power plants that sell electric power to wholesale customers. This segment sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 30,000 megawatts (MW) of electric generating capacity, including approximately 9,000 MW of nuclear power. The company delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1949 and is based in New Orleans, Louisiana.

About Tenaga Nasional Bhd

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, as well as supports six independent power producers; and manages and operates the National Grid that is connected to Thailand's transmission system in the north, as well as Singapore's transmission system at Senoko in the south. 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, as well as other related services; 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, parking facilities for motor vehicles, technical and laboratory, and 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; and assembles, manufactures, tests, reconditions, and distributes high and medium voltage switchgears, and control gears for transmission and distribution of electric power. It primarily serves commercial and industrial, and residential customers. The company was founded in 1949 and is headquartered in Kuala Lumpur, Malaysia.

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