Boralex (OTCMKTS:BRLXF) and Kenon (NYSE:KEN) Head-To-Head Review

Kenon (NYSE:KEN) and Boralex (OTCMKTS:BRLXF) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kenon and Boralex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenon	0	1	0	0	2.00
Boralex	0	2	1	0	2.33

Earnings and Valuation

This table compares Kenon and Boralex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenon	$1.01 billion	3.33	$66.27 million	$1.04	61.79
Boralex	N/A	N/A	N/A	($0.13)	-209.74

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

Profitability

This table compares Kenon and Boralex’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%
Boralex	N/A	N/A	N/A

Institutional & Insider Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 57.0% of Boralex shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Kenon pays an annual dividend of $3.85 per share and has a dividend yield of 6.0%. Boralex pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Kenon pays out 370.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boralex pays out -309.1% of its earnings in the form of a dividend. Kenon has raised its dividend for 2 consecutive years. Kenon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Kenon beats Boralex on 9 of the 13 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 Boralex

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities in Canada, France, the United States, and the United Kingdom. It generates electricity from wind, solar, and hydroelectric resources. As of December 31, 2023, the company operates 100 wind farms; 12 solar energy facilities; 15 hydroelectric power stations; and 2 storage units with an installed capacity of 1,819 megawatts (MW) in North America and 1,259 MW in Europe. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.