Financial Review: Terna (OTCMKTS:TERRF) and Emera (OTCMKTS:EMRAF)

Emera (OTCMKTS:EMRAF) and Terna (OTCMKTS:TERRF) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Dividends

Emera pays an annual dividend of $1.45 per share and has a dividend yield of 4.1%. Terna pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. Emera pays out 73.8% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Emera	N/A	N/A	N/A
Terna	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Emera and Terna, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emera	0	0	1	0	3.00
Terna	0	1	0	0	2.00

Emera presently has a consensus price target of $60.00, suggesting a potential upside of 68.30%. Given Emera’s stronger consensus rating and higher possible upside, analysts plainly believe Emera is more favorable than Terna.

Insider and Institutional Ownership

23.8% of Emera shares are held by institutional investors. Comparatively, 20.2% of Terna shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Emera and Terna’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emera	N/A	N/A	N/A	$1.97	18.14
Terna	N/A	N/A	N/A	$0.26	31.26

Emera is trading at a lower price-to-earnings ratio than Terna, indicating that it is currently the more affordable of the two stocks.

Summary

Emera beats Terna on 6 of the 8 factors compared between the two stocks.

About Emera

Emera Incorporated, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through natural gas, solar, hydroelectricity, coal, and biomass power plants. The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline. As of December 31, 2023, the company's electric utilities served approximately 840,000 customers in West Central Florida; 549,000 customers in Nova Scotia; 134,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and gas utilities and infrastructure served approximately 490,000 customers across Florida and 540,000 customers in New Mexico. The company was incorporated in 1998 and is headquartered in Halifax, Canada.

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.