Head-To-Head Survey: Tenaga Nasional Berhad (OTCMKTS:TNABY) and Alliant Energy (NASDAQ:LNT)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliant Energy	0	3	8	0	2.73
Tenaga Nasional Berhad	0	0	0	0	0.00

Alliant Energy presently has a consensus price target of $71.13, suggesting a potential upside of 6.65%. Given Alliant Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Alliant Energy is more favorable than Tenaga Nasional Berhad.

Risk and Volatility

Alliant Energy has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Tenaga Nasional Berhad has a beta of -0.44, suggesting that its share price is 144% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alliant Energy and Tenaga Nasional Berhad”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliant Energy	$3.98 billion	4.31	$690.00 million	$3.18	20.97
Tenaga Nasional Berhad	N/A	N/A	N/A	$0.44	31.13

Alliant Energy has higher revenue and earnings than Tenaga Nasional Berhad. Alliant Energy is trading at a lower price-to-earnings ratio than Tenaga Nasional Berhad, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.9% of Alliant Energy shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 3.2%. Tenaga Nasional Berhad pays an annual dividend of $0.38 per share and has a dividend yield of 2.8%. Alliant Energy pays out 67.3% of its earnings in the form of a dividend. Tenaga Nasional Berhad pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alliant Energy has increased its dividend for 22 consecutive years. Alliant Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Alliant Energy and Tenaga Nasional Berhad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alliant Energy	19.14%	12.02%	3.65%
Tenaga Nasional Berhad	N/A	N/A	N/A

Summary

Alliant Energy beats Tenaga Nasional Berhad on 14 of the 15 factors compared between the two stocks.

About Alliant Energy

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.

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.