Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) versus Consolidated Edison (NYSE:ED) Head-To-Head Analysis

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

Earnings and Valuation

This table compares Consolidated Edison and Terna Rete Elettrica Nazionale”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consolidated Edison	$16.92 billion	2.45	$2.02 billion	$5.65	20.33
Terna Rete Elettrica Nazionale	$3.98 billion	5.78	$1.15 billion	N/A	N/A

Consolidated Edison has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Insider and Institutional Ownership

66.3% of Consolidated Edison shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Consolidated Edison has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Terna Rete Elettrica Nazionale has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Consolidated Edison	11.95%	8.50%	2.82%
Terna Rete Elettrica Nazionale	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Consolidated Edison and Terna Rete Elettrica Nazionale, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consolidated Edison	5	7	3	0	1.87
Terna Rete Elettrica Nazionale	1	1	1	0	2.00

Consolidated Edison presently has a consensus price target of $108.80, indicating a potential downside of 5.27%. Given Consolidated Edison’s higher possible upside, equities research analysts clearly believe Consolidated Edison is more favorable than Terna Rete Elettrica Nazionale.

Dividends

Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.1%. Terna Rete Elettrica Nazionale pays an annual dividend of $0.47 per share and has a dividend yield of 1.4%. Consolidated Edison pays out 62.8% of its earnings in the form of a dividend. Consolidated Edison has increased its dividend for 52 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Consolidated Edison beats Terna Rete Elettrica Nazionale on 11 of the 15 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

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.