Head to Head Survey: OGE Energy (NYSE:OGE) vs. Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY)

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

Analyst Recommendations

This is a summary of current recommendations for Terna Rete Elettrica Nazionale and OGE Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terna Rete Elettrica Nazionale	1	0	1	0	2.00
OGE Energy	0	5	6	0	2.55

OGE Energy has a consensus price target of $48.11, suggesting a potential upside of 0.86%. Given OGE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe OGE Energy is more favorable than Terna Rete Elettrica Nazionale.

Profitability

This table compares Terna Rete Elettrica Nazionale and OGE Energy’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
OGE Energy	14.44%	9.89%	3.32%

Dividends

Terna Rete Elettrica Nazionale pays an annual dividend of $0.47 per share and has a dividend yield of 1.4%. OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.6%. OGE Energy pays out 73.6% of its earnings in the form of a dividend. OGE Energy has raised its dividend for 18 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

71.8% of OGE Energy shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Terna Rete Elettrica Nazionale has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Terna Rete Elettrica Nazionale and OGE Energy”s top-line 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	5.50	$1.15 billion	N/A	N/A
OGE Energy	$3.26 billion	3.02	$470.70 million	$2.31	20.65

Terna Rete Elettrica Nazionale has higher revenue and earnings than OGE Energy.

Summary

OGE Energy beats Terna Rete Elettrica Nazionale on 10 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 OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy services provider in the United States. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 896,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.