Kenon (NYSE:KEN) & Central Puerto (NYSE:CEPU) Critical Survey

Kenon (NYSE:KEN) and Central Puerto (NYSE:CEPU) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Kenon and Central Puerto, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenon	0	1	0	0	2.00
Central Puerto	0	1	1	0	2.50

Central Puerto has a consensus price target of $17.50, suggesting a potential upside of 16.72%. Given Central Puerto’s stronger consensus rating and higher probable upside, analysts clearly believe Central Puerto is more favorable than Kenon.

Earnings and Valuation

This table compares Kenon and Central Puerto”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenon	$871.63 million	3.96	$66.27 million	$1.04	63.70
Central Puerto	$782.60 million	2.90	$277.08 million	$2.08	7.21

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

Insider & Institutional Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 3.0% of Central Puerto shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Comparatively, 0.1% of Central Puerto shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Kenon has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Central Puerto has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenon	7.98%	3.47%	2.01%
Central Puerto	37.86%	15.93%	11.06%

Summary

Central Puerto beats Kenon on 8 of the 14 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 Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.