Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) vs. NRG Energy (NYSE:NRG) Critical Comparison

Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) and NRG Energy (NYSE:NRG) are both large-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

97.7% of NRG Energy shares are held by institutional investors. 0.9% of NRG Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Terna Rete Elettrica Nazionale pays an annual dividend of $1.29 per share and has a dividend yield of 4.3%. NRG Energy pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. NRG Energy pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NRG Energy has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Terna Rete Elettrica Nazionale and NRG Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terna Rete Elettrica Nazionale	N/A	N/A	N/A	N/A	N/A
NRG Energy	$28.13 billion	1.00	$1.13 billion	$2.21	65.96

NRG Energy has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Volatility and Risk

Terna Rete Elettrica Nazionale has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, NRG Energy has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Terna Rete Elettrica Nazionale and NRG Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terna Rete Elettrica Nazionale	1	1	0	0	1.50
NRG Energy	0	2	9	1	2.92

NRG Energy has a consensus price target of $186.9167, suggesting a potential upside of 28.23%. Given NRG Energy’s stronger consensus rating and higher probable upside, analysts clearly believe NRG Energy is more favorable than Terna Rete Elettrica Nazionale.

Profitability

This table compares Terna Rete Elettrica Nazionale and NRG Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terna Rete Elettrica Nazionale	N/A	N/A	N/A
NRG Energy	1.78%	88.22%	6.80%

Summary

NRG Energy beats Terna Rete Elettrica Nazionale on 12 of the 14 factors compared between the two stocks.

About Terna Rete Elettrica Nazionale

Terna S.p.A., together with its subsidiaries, provides electricity transmission and dispatching services in Italy, other Euro-area countries, and internationally. It operates through Regulated, Non-Regulated, and International segments. The company is involved in the design, construction, management, development, operation, and maintenance of national transmission grid; dispatching and metering; and construction of storage systems. It also supplies transformers and cables; provides energy and connectivity services; and installs and operates interconnecting lines. In addition, the company designs, produces, commercializes, and repairs power transformers for electricity transmission and distribution grids; industrial transformers for the steel and metals industries; special transformers for convertors used in electrochemical production; produces and sells marine and terrestrial cables; develops renewable energy projects; and undertakes private interconnector projects. Terna S.p.A. was founded in 1962 and is based in Rome, Italy.

About NRG Energy

NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.