Financial Review: Consolidated Edison (NYSE:ED) & Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY)

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

Profitability

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

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

Analyst Ratings

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

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

Consolidated Edison has a consensus price target of $107.73, suggesting a potential downside of 3.65%. Given Consolidated Edison’s higher possible upside, analysts plainly believe Consolidated Edison is more favorable than Terna Rete Elettrica Nazionale.

Dividends

Terna Rete Elettrica Nazionale pays an annual dividend of $0.47 per share and has a dividend yield of 1.4%. Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.2%. 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.

Volatility and Risk

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

Institutional & Insider Ownership

66.3% of Consolidated Edison shares are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terna Rete Elettrica Nazionale	$3.98 billion	5.71	$1.15 billion	N/A	N/A
Consolidated Edison	$16.92 billion	2.39	$2.02 billion	$5.65	19.79

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

Summary

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

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.

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.