Critical Comparison: Tenaga Nasional Berhad (OTCMKTS:TNABY) vs. Iberdrola (OTCMKTS:IBDRY)

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

Volatility and Risk

Tenaga Nasional Berhad has a beta of -0.29, indicating that its share price is 129% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaga Nasional Berhad	0	0	0	0	0.00
Iberdrola	0	3	2	0	2.40

Dividends

Tenaga Nasional Berhad pays an annual dividend of $0.38 per share and has a dividend yield of 3.0%. Iberdrola pays an annual dividend of $2.99 per share and has a dividend yield of 4.0%. Iberdrola pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Tenaga Nasional Berhad and Iberdrola’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
Iberdrola	11.30%	8.27%	3.18%

Earnings & Valuation

This table compares Tenaga Nasional Berhad and Iberdrola”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaga Nasional Berhad	$11.58 billion	N/A	$788.25 million	N/A	N/A
Iberdrola	$48.42 billion	2.55	$6.07 billion	$3.31	22.34

Iberdrola has higher revenue and earnings than Tenaga Nasional Berhad.

Insider and Institutional Ownership

0.0% of Iberdrola shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Iberdrola beats Tenaga Nasional Berhad on 10 of the 11 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 Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.