Comparing Kenon (NYSE:KEN) & Enlight Renewable Energy (NASDAQ:ENLT)
by Mitch Edgeman · The Markets DailyKenon (NYSE:KEN – Get Free Report) and Enlight Renewable Energy (NASDAQ:ENLT – Get Free Report) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Volatility & Risk
Kenon has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Enlight Renewable Energy has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Profitability
This table compares Kenon and Enlight Renewable Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kenon | 10.03% | 4.46% | 2.42% |
| Enlight Renewable Energy | 12.35% | 3.52% | 0.86% |
Analyst Ratings
This is a breakdown of current ratings for Kenon and Enlight Renewable Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kenon | 0 | 1 | 0 | 0 | 2.00 |
| Enlight Renewable Energy | 2 | 2 | 3 | 1 | 2.38 |
Enlight Renewable Energy has a consensus price target of $75.00, indicating a potential upside of 2.95%. Given Enlight Renewable Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Enlight Renewable Energy is more favorable than Kenon.
Institutional & Insider Ownership
13.4% of Kenon shares are owned by institutional investors. Comparatively, 38.9% of Enlight Renewable Energy shares are owned by institutional investors. 0.1% of Kenon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Kenon and Enlight Renewable Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kenon | $871.63 million | 3.83 | $66.27 million | $1.04 | 61.57 |
| Enlight Renewable Energy | $582.26 million | 14.83 | $132.10 million | $0.62 | 117.50 |
Enlight Renewable Energy has lower revenue, but higher earnings than Kenon. Kenon is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Enlight Renewable Energy beats Kenon on 10 of the 15 factors compared between the two stocks.
About Kenon
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 Enlight Renewable Energy
Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.