Tenaga Nasional Berhad (OTCMKTS:TNABY – Get Free Report) and Duke Energy (NYSE:DUK – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Earnings & Valuation
This table compares Tenaga Nasional Berhad and Duke Energy”s gross 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 |
Duke Energy | $30.36 billion | 3.15 | $4.52 billion | $6.15 | 20.00 |
Analyst Ratings
This is a summary of current ratings and recommmendations for Tenaga Nasional Berhad and Duke Energy, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tenaga Nasional Berhad | 0 | 0 | 0 | 0 | 0.00 |
Duke Energy | 0 | 7 | 7 | 0 | 2.50 |
Duke Energy has a consensus price target of $131.00, indicating a potential upside of 6.52%. Given Duke Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Duke Energy is more favorable than Tenaga Nasional Berhad.
Risk & Volatility
Tenaga Nasional Berhad has a beta of -0.29, meaning that its share price is 129% less volatile than the S&P 500. Comparatively, Duke Energy has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
Dividends
Tenaga Nasional Berhad pays an annual dividend of $0.38 per share and has a dividend yield of 3.0%. Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.5%. Duke Energy pays out 69.3% of its earnings in the form of a dividend. Duke Energy has increased its dividend for 20 consecutive years. Duke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Tenaga Nasional Berhad and Duke Energy’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 |
Duke Energy | 15.51% | 9.85% | 2.65% |
Insider & Institutional Ownership
65.3% of Duke Energy shares are owned by institutional investors. 0.1% of Duke Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Duke Energy beats Tenaga Nasional Berhad on 13 of the 14 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 Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.
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