Tenaga Nasional Berhad (OTCMKTS:TNABY) versus ReNew Energy Global (NASDAQ:RNW) Critical Contrast

Tenaga Nasional Berhad (OTCMKTS:TNABY) and ReNew Energy Global (NASDAQ:RNW) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tenaga Nasional Berhad and ReNew Energy Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaga Nasional Berhad	0	0	0	0	N/A
ReNew Energy Global	0	0	2	0	3.00

ReNew Energy Global has a consensus price target of $7.88, suggesting a potential upside of 21.53%. Given ReNew Energy Global’s higher possible upside, analysts clearly believe ReNew Energy Global is more favorable than Tenaga Nasional Berhad.

Valuation & Earnings

This table compares Tenaga Nasional Berhad and ReNew Energy Global’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaga Nasional Berhad	$11.58 billion	0.99	$788.23 million	$0.55	14.47
ReNew Energy Global	$77.30 billion	0.03	-$58.00 million	($0.09)	-72.00

Tenaga Nasional Berhad has higher earnings, but lower revenue than ReNew Energy Global. ReNew Energy Global 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenaga Nasional Berhad	N/A	N/A	N/A
ReNew Energy Global	-2.21%	-1.65%	-0.27%

Risk & Volatility

Tenaga Nasional Berhad has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500. Comparatively, ReNew Energy Global has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

38.3% of ReNew Energy Global shares are owned by institutional investors. 8.7% of ReNew Energy Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Tenaga Nasional Berhad beats ReNew Energy Global on 7 of the 13 factors compared between the two stocks.

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.

About ReNew Energy Global

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.