Financial Analysis: Entergy (ETR) vs. Kenon (KEN)
Entergy (NYSE: KEN) and Kenon (NYSE:KEN) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
This table compares Entergy and Kenon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Entergy and Kenon, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Entergy presently has a consensus price target of $87.86, suggesting a potential upside of 3.14%. Given Entergy’s higher probable upside, research analysts plainly believe Entergy is more favorable than Kenon.
Entergy pays an annual dividend of $3.56 per share and has a dividend yield of 4.2%. Kenon does not pay a dividend. Entergy pays out 49.4% of its earnings in the form of a dividend. Entergy has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
91.5% of Entergy shares are held by institutional investors. Comparatively, 1.6% of Kenon shares are held by institutional investors. 0.3% of Entergy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Entergy has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Kenon has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.
Earnings and Valuation
This table compares Entergy and Kenon’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Entergy||$11.07 billion||1.39||$425.35 million||$7.20||11.83|
|Kenon||$366.00 million||2.35||$236.59 million||N/A||N/A|
Entergy has higher revenue and earnings than Kenon.
Entergy beats Kenon on 9 of the 14 factors compared between the two stocks.
Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It generates electricity through gas/oil, nuclear, coal, hydro, and solar power sources. The company's Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and distributes natural gas. Its Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and owning interests in non-nuclear power plants that sell electric power to wholesale customers. This segment sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 30,000 megawatts (MW) of electric generating capacity, including approximately 9,000 MW of nuclear power. The company delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1949 and is based in New Orleans, Louisiana.
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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