Comparing Eversource Energy (ES) and Kenon (KEN)

Eversource Energy (NYSE:ES) and Kenon (NYSE:KEN) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Eversource Energy and Kenon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eversource Energy 0 5 7 0 2.58
Kenon 0 0 0 0 N/A

Eversource Energy currently has a consensus target price of $63.22, indicating a potential upside of 4.19%. Given Eversource Energy’s higher possible upside, analysts plainly believe Eversource Energy is more favorable than Kenon.

Earnings & Valuation

This table compares Eversource Energy and Kenon’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eversource Energy $7.75 billion 2.48 $987.99 million $3.11 19.51
Kenon $366.00 million 2.66 $236.59 million N/A N/A

Eversource Energy has higher revenue and earnings than Kenon.

Profitability

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

Net Margins Return on Equity Return on Assets
Eversource Energy 12.59% 9.07% 2.81%
Kenon N/A 41.51% 13.85%

Insider & Institutional Ownership

73.3% of Eversource Energy shares are held by institutional investors. Comparatively, 1.6% of Kenon shares are held by institutional investors. 0.5% of Eversource Energy shares are held by company insiders. 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.

Dividends

Eversource Energy pays an annual dividend of $2.02 per share and has a dividend yield of 3.3%. Kenon does not pay a dividend. Eversource Energy pays out 65.0% of its earnings in the form of a dividend. Eversource Energy has increased its dividend for 2 consecutive years.

Risk & Volatility

Eversource Energy has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Kenon has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Summary

Eversource Energy beats Kenon on 9 of the 14 factors compared between the two stocks.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in three segments: Electric Distribution, Electric Transmission, and Natural Gas Distribution. It is involved in the transmission and distribution of electricity; and distribution of natural gas. The company operates water regulated utilities. It also provides water services to approximately 226,000 customers. It serves residential, commercial, industrial, municipal, fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire, the United States. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts.

About Kenon

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.

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