Analyzing Duke Energy (NYSE:DUK) and Tenaga Nasional Berhad (OTCMKTS:TNABY)

Duke Energy (NYSE:DUK) and Tenaga Nasional Berhad (OTCMKTS:TNABY) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Duke Energy and Tenaga Nasional Berhad”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duke Energy	$30.36 billion	3.11	$4.52 billion	$6.15	19.77
Tenaga Nasional Berhad	$11.58 billion	N/A	$788.25 million	N/A	N/A

Duke Energy has higher revenue and earnings than Tenaga Nasional Berhad.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Duke Energy and Tenaga Nasional Berhad, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duke Energy	0	7	7	0	2.50
Tenaga Nasional Berhad	0	0	0	0	0.00

Duke Energy presently has a consensus target price of $131.50, suggesting a potential upside of 8.17%. Given Duke Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Duke Energy is more favorable than Tenaga Nasional Berhad.

Dividends

Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.5%. Tenaga Nasional Berhad pays an annual dividend of $0.38 per share and has a dividend yield of 2.9%. Duke Energy pays out 69.3% of its earnings in the form of a dividend. Duke Energy has raised 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 Duke Energy and Tenaga Nasional Berhad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duke Energy	15.51%	9.85%	2.65%
Tenaga Nasional Berhad	N/A	N/A	N/A

Volatility & Risk

Duke Energy has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Tenaga Nasional Berhad has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Insider and Institutional Ownership

65.3% of Duke Energy shares are held by institutional investors. 0.1% of Duke Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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 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.

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.