Comparing Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) & Edison International (NYSE:EIX)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Edison International and Terna Rete Elettrica Nazionale, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edison International	3	6	5	0	2.14
Terna Rete Elettrica Nazionale	1	1	0	0	1.50

Edison International presently has a consensus price target of $72.82, suggesting a potential upside of 4.16%. Given Edison International’s stronger consensus rating and higher possible upside, analysts clearly believe Edison International is more favorable than Terna Rete Elettrica Nazionale.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edison International	19.27%	14.56%	2.87%
Terna Rete Elettrica Nazionale	N/A	N/A	N/A

Dividends

Edison International pays an annual dividend of $3.51 per share and has a dividend yield of 5.0%. Terna Rete Elettrica Nazionale pays an annual dividend of $0.47 per share and has a dividend yield of 1.3%. Edison International pays out 38.1% of its earnings in the form of a dividend. Edison International has increased its dividend for 23 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Edison International 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
Edison International	$19.32 billion	1.39	$4.70 billion	$9.21	7.59
Terna Rete Elettrica Nazionale	$3.98 billion	6.07	$1.15 billion	N/A	N/A

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

Institutional & Insider Ownership

89.0% of Edison International shares are owned by institutional investors. 1.2% of Edison International shares are owned by 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.

Risk and Volatility

Edison International has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Terna Rete Elettrica Nazionale has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Edison International beats Terna Rete Elettrica Nazionale on 13 of the 15 factors compared between the two stocks.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.

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.