Analyzing Kenon (NYSE:KEN) and Exelon (NASDAQ:EXC)

Kenon (NYSE:KEN – Get Free Report) and Exelon (NASDAQ:EXC – Get Free Report) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Dividends

Kenon pays an annual dividend of $4.80 per share and has a dividend yield of 5.7%. Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 3.4%. Kenon pays out 623.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon pays out 61.5% of its earnings in the form of a dividend. Kenon has raised its dividend for 2 consecutive years and Exelon has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Kenon and Exelon, as provided by MarketBeat.

Exelon has a consensus target price of $51.47, suggesting a potential upside of 4.33%. Given Exelon’s stronger consensus rating and higher possible upside, analysts clearly believe Exelon is more favorable than Kenon.

Risk & Volatility

Kenon has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Exelon has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 80.9% of Exelon shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Comparatively, 0.1% of Exelon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Kenon and Exelon’s net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Kenon and Exelon”s revenue, earnings per share and valuation.

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

Summary

Exelon beats Kenon on 11 of the 17 factors compared between the two stocks.

About Kenon

(Get Free Report)

Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates through OPC Power Plants, CPV Group, and ZIM segments. The company engages in the generation and supply of electricity and energy; development, construction, and management of solar and wind energy, and conventional natural gas-fired power plants; and provision of container liner shipping services. It also operates a fleet of 150 vessels. Kenon Holdings Ltd. was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. operates as a subsidiary of Ansonia Holdings Singapore B.V.

About Exelon

(Get Free Report)

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.