Brookfield Infrastructure Partners (NYSE: BIP) and Kenon (NYSE:KEN) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
This table compares Brookfield Infrastructure Partners and Kenon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Infrastructure Partners||5.40%||2.31%||1.01%|
Brookfield Infrastructure Partners pays an annual dividend of $1.88 per share and has a dividend yield of 4.8%. Kenon does not pay a dividend. Brookfield Infrastructure Partners pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners has increased its dividend for 8 consecutive years.
Risk and Volatility
Brookfield Infrastructure Partners has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Kenon has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Institutional and Insider Ownership
47.9% of Brookfield Infrastructure Partners shares are owned by institutional investors. Comparatively, 1.7% of Kenon shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Brookfield Infrastructure Partners and Kenon, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Infrastructure Partners||0||1||8||0||2.89|
Brookfield Infrastructure Partners currently has a consensus target price of $46.56, indicating a potential upside of 19.99%. Given Brookfield Infrastructure Partners’ higher possible upside, research analysts clearly believe Brookfield Infrastructure Partners is more favorable than Kenon.
Earnings and Valuation
This table compares Brookfield Infrastructure Partners and Kenon’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Infrastructure Partners||$3.54 billion||3.04||$124.00 million||$1.51||25.70|
|Kenon||$366.00 million||2.35||$236.59 million||N/A||N/A|
Kenon has lower revenue, but higher earnings than Brookfield Infrastructure Partners.
Brookfield Infrastructure Partners beats Kenon on 8 of the 13 factors compared between the two stocks.
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. engages in utility, transport, energy, and communications infrastructure businesses. The company's Utilities segment operates approximately 2,000 kilometers (km) of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; approximately 12,000 km of electricity transmission lines in North and South America; approximately 3.3 million electricity and natural gas connections in the United Kingdom and Colombia; and a port facility that exports metallurgical and thermal coal in Australia. Its Transport segment offers transportation, storage, and handling services for freight, bulk commodities, and passengers through a network of 5,500 km of track network in south of Western Australia; approximately 4,800 km of rail in South America; approximately 4,000 km of motorways in Brazil, Chile, Peru, and India; and 37 port terminals in North America, the United Kingdom, Australia, and Europe. The company's Energy segment offers energy transportation, distribution, and storage services through approximately 15,000 km of natural gas transmission pipelines; and 600 billion cubic feet of natural gas storage in the United States and Canada. This segment also provides heating, cooling, and energy solutions; and distributed natural gas, water, and wastewater services to approximately 59,000 commercial and residential customers. Its Communications Infrastructure segment offers services and critical infrastructure to the media broadcasting and telecom sectors. It has approximately 7,000 multi-purpose towers and active rooftop sites; and 5,000 km of fiber backbone located in France. Brookfield Infrastructure Partners Limited serves as the general partner of the company. Brookfield Infrastructure Partners L.P. was founded in 2007 and is based in Hamilton, Bermuda. The company is a subsidiary of Brookfield Asset Management Inc.
Kenon Holdings Ltd., through its subsidiaries, owns, develops, and operates power generation and distribution facilities primarily in Latin America, the Caribbean, and Israel. It also designs, manufactures, distributes, and services passenger vehicles through a network of independent authorized retail dealers in the People's Republic of China. As of December 31, 2016, the company's Qoros' dealerships had 115 point of sales. In addition, it develops and owns a proprietary natural gas-to-liquid technology process. The company is based in Singapore.
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