Kenon (NYSE: BKH) and Black Hills (NYSE:BKH) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
1.6% of Kenon shares are owned by institutional investors. Comparatively, 99.7% of Black Hills shares are owned by institutional investors. 1.1% of Black Hills shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Kenon and Black Hills, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Black Hills has a consensus target price of $60.43, suggesting a potential upside of 2.66%. Given Black Hills’ higher probable upside, analysts plainly believe Black Hills is more favorable than Kenon.
Volatility and Risk
Kenon has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
Black Hills pays an annual dividend of $1.90 per share and has a dividend yield of 3.2%. Kenon does not pay a dividend. Black Hills pays out 56.5% of its earnings in the form of a dividend. Black Hills has increased its dividend for 48 consecutive years.
Earnings & Valuation
This table compares Kenon and Black Hills’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kenon||$366.00 million||2.56||$236.59 million||N/A||N/A|
|Black Hills||$1.68 billion||1.88||$177.03 million||$3.36||17.52|
Kenon has higher earnings, but lower revenue than Black Hills.
This table compares Kenon and Black Hills’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Black Hills beats Kenon on 8 of the 14 factors compared between the two stocks.
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.
About Black Hills
Black Hills Corporation, through its subsidiaries, operates as a vertically-integrated utility company in the United States. The company's Electric Utilities segment generates, transmits, and distributes electricity to approximately 210,000 electric customers in South Dakota, Wyoming, Colorado, and Montana. This segment owns 941 megawatts of generation capacity and 8,839 miles of electric transmission and distribution lines. Its Gas Utilities segment distributes natural gas to approximately 1,042,000 natural gas utility customers in Arkansas, Colorado, Iowa, Nebraska, Kansas, and Wyoming. This segment owns 4,656 miles of intrastate gas transmission pipelines and 40,455 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The company's Power Generation segment produces electric power and sells the electric capacity and energy primarily to its utilities under long-term contracts. Its Mining segment produces coal at its coal mine located near Gillette, Wyoming and sells the coal to electric generation facilities. The company also provides appliance repair services to approximately 63,000 residential customers; and constructs and maintains gas infrastructure facilities and electrical systems for gas transportation and electric utilities customers. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.
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