Terna (OTCMKTS:TERRF) vs. Eversource Energy (NYSE:ES) Head-To-Head Analysis

Eversource Energy (NYSE:ES) and Terna (OTCMKTS:TERRF) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Eversource Energy and Terna, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	0	8	6	0	2.43
Terna	0	1	0	0	2.00

Eversource Energy currently has a consensus price target of $68.93, indicating a potential upside of 3.61%. Given Eversource Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Eversource Energy is more favorable than Terna.

Profitability

This table compares Eversource Energy and Terna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	-0.81%	10.34%	2.69%
Terna	N/A	N/A	N/A

Dividends

Eversource Energy pays an annual dividend of $2.86 per share and has a dividend yield of 4.3%. Terna pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. Eversource Energy pays out -242.4% of its earnings in the form of a dividend. Terna pays out 61.8% 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.

Earnings and Valuation

This table compares Eversource Energy and Terna”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$11.35 billion	2.06	-$442.24 million	($1.18)	-56.38
Terna	N/A	N/A	N/A	$0.26	33.00

Terna has lower revenue, but higher earnings 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.

Institutional & Insider Ownership

80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 20.2% of Terna shares are owned by institutional investors. 0.4% of Eversource Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Eversource Energy beats Terna on 11 of the 14 factors compared between the two stocks.

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.

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.