Comparing Tenaga Nasional Berhad (OTCMKTS:TNABY) & Evergy (NASDAQ:EVRG)

Evergy (NASDAQ:EVRG) and Tenaga Nasional Berhad (OTCMKTS:TNABY) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

87.2% of Evergy shares are held by institutional investors. 1.5% of Evergy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Evergy and Tenaga Nasional Berhad, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evergy	0	3	8	1	2.83
Tenaga Nasional Berhad	0	0	0	0	0.00

Evergy presently has a consensus target price of $89.30, indicating a potential upside of 8.80%. Given Evergy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Evergy is more favorable than Tenaga Nasional Berhad.

Profitability

This table compares Evergy and Tenaga Nasional Berhad’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evergy	14.35%	8.79%	2.68%
Tenaga Nasional Berhad	N/A	N/A	N/A

Valuation and Earnings

This table compares Evergy and Tenaga Nasional Berhad”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evergy	$5.96 billion	3.17	$855.60 million	$3.67	22.37
Tenaga Nasional Berhad	N/A	N/A	N/A	$0.44	31.66

Evergy has higher revenue and earnings than Tenaga Nasional Berhad. Evergy is trading at a lower price-to-earnings ratio than Tenaga Nasional Berhad, indicating that it is currently the more affordable of the two stocks.

Dividends

Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.4%. Tenaga Nasional Berhad pays an annual dividend of $0.46 per share and has a dividend yield of 3.3%. Evergy pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tenaga Nasional Berhad pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy has increased its dividend for 20 consecutive years. Evergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Evergy has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Tenaga Nasional Berhad has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500.

Summary

Evergy beats Tenaga Nasional Berhad on 15 of the 16 factors compared between the two stocks.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.

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.