Kenon (NYSE:KEN) and FirstEnergy (NYSE:FE) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Institutional and Insider Ownership
1.6% of Kenon shares are owned by institutional investors. Comparatively, 94.5% of FirstEnergy shares are owned by institutional investors. 0.3% of FirstEnergy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Kenon has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
FirstEnergy pays an annual dividend of $1.44 per share and has a dividend yield of 3.9%. Kenon does not pay a dividend. FirstEnergy pays out 46.9% of its earnings in the form of a dividend.
This table compares Kenon and FirstEnergy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Kenon and FirstEnergy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FirstEnergy has a consensus price target of $39.33, suggesting a potential upside of 7.15%. Given FirstEnergy’s higher probable upside, analysts plainly believe FirstEnergy is more favorable than Kenon.
Valuation and Earnings
This table compares Kenon and FirstEnergy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kenon||$366.00 million||2.29||$236.59 million||N/A||N/A|
|FirstEnergy||$14.02 billion||1.27||-$1.72 billion||$3.07||11.96|
Kenon has higher earnings, but lower revenue than FirstEnergy.
Kenon beats FirstEnergy on 7 of the 13 factors compared between the two stocks.
Kenon Holdings Ltd., through its subsidiaries, owns, develops, and operates power generation facilities in Israel. It operates through OPC, Qoros, and Other segments. The company's power generation plants operate on natural gas and diesel. It also designs, manufactures, sells, and services passenger vehicles, parts, and accessories through a network of independent authorized retail dealers in China. As of December 31, 2017, the company's Qoros' dealerships included 113 point of sales facilities. In addition, Kenon Holdings Ltd., through its 32% equity interest in ZIM Integrated Shipping Services, Ltd., owned and chartered vessels with a total container capacity of 385,974 TEUs. Further, it develops and owns a proprietary natural gas-to-liquid technology process. The company was incorporated in 2014 and is based in Singapore.
FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. It owns and operates coal-fired, nuclear, hydroelectric, oil and natural gas, wind, and solar power generating facilities. The company also provides energy-related products and services to retail and wholesale customers. It operates 24,493 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 276,555 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits, as well as owns substations with a total installed transformer capacity of approximately 164,470,215 kilovolt-amperes. The company serves approximately six million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was founded in 1996 and is headquartered in Akron, Ohio.
Receive News & Ratings for Kenon Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kenon and related companies with MarketBeat.com's FREE daily email newsletter.