Terna (OTCMKTS:TERRF – Get Free Report) and Eversource Energy (NYSE:ES – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Valuation and Earnings
This table compares Terna and Eversource Energy”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Terna | N/A | N/A | N/A | $0.26 | 33.00 |
Eversource Energy | $11.35 billion | 2.11 | -$442.24 million | ($1.18) | -57.67 |
Terna has higher earnings, but lower revenue than Eversource Energy. Eversource Energy is trading at a lower price-to-earnings ratio than Terna, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
Dividends
Terna pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. Eversource Energy pays an annual dividend of $2.86 per share and has a dividend yield of 4.2%. Terna pays out 61.8% of its earnings in the form of a dividend. Eversource Energy pays out -242.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eversource Energy has increased its dividend for 26 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Terna and Eversource Energy, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Terna | 0 | 0 | 0 | 0 | N/A |
Eversource Energy | 0 | 8 | 6 | 0 | 2.43 |
Eversource Energy has a consensus price target of $68.93, indicating a potential upside of 1.29%. Given Eversource Energy’s higher probable upside, analysts clearly believe Eversource Energy is more favorable than Terna.
Profitability
This table compares Terna and Eversource Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Terna | N/A | N/A | N/A |
Eversource Energy | -0.81% | 10.34% | 2.69% |
Summary
Eversource Energy beats Terna on 10 of the 13 factors compared between the two stocks.
About Terna
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.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
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