Reviewing Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) and Pacific Gas & Electric (NYSE:PCG)

Pacific Gas & Electric (NYSE:PCG) and Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) are both large-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Institutional & Insider Ownership

78.6% of Pacific Gas & Electric shares are owned by institutional investors. 0.1% of Pacific Gas & Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Pacific Gas & Electric pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Terna Rete Elettrica Nazionale pays an annual dividend of $1.29 per share and has a dividend yield of 4.3%. Pacific Gas & Electric pays out 9.2% of its earnings in the form of a dividend. Pacific Gas & Electric has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Pacific Gas & Electric and Terna Rete Elettrica Nazionale, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Gas & Electric	1	5	6	0	2.42
Terna Rete Elettrica Nazionale	1	1	0	0	1.50

Pacific Gas & Electric presently has a consensus target price of $20.20, indicating a potential upside of 30.58%. Given Pacific Gas & Electric’s stronger consensus rating and higher possible upside, research analysts clearly believe Pacific Gas & Electric is more favorable than Terna Rete Elettrica Nazionale.

Valuation & Earnings

This table compares Pacific Gas & Electric and Terna Rete Elettrica Nazionale”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Gas & Electric	$24.42 billion	1.70	$2.51 billion	$1.09	14.19
Terna Rete Elettrica Nazionale	N/A	N/A	N/A	N/A	N/A

Pacific Gas & Electric has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Profitability

This table compares Pacific Gas & Electric and Terna Rete Elettrica Nazionale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Gas & Electric	9.95%	10.13%	2.17%
Terna Rete Elettrica Nazionale	N/A	N/A	N/A

Risk and Volatility

Pacific Gas & Electric has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Terna Rete Elettrica Nazionale has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Summary

Pacific Gas & Electric beats Terna Rete Elettrica Nazionale on 10 of the 13 factors compared between the two stocks.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.

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.