Kenon (NYSE:KEN – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Volatility and Risk
Kenon has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
Profitability
This table compares Kenon and Talen Energy’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% |
| Talen Energy | -5.38% | 43.32% | 5.31% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kenon | 0 | 1 | 0 | 0 | 2.00 |
| Talen Energy | 1 | 3 | 10 | 0 | 2.64 |
Talen Energy has a consensus price target of $466.86, suggesting a potential upside of 47.27%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talen Energy is more favorable than Kenon.
Valuation & Earnings
This table compares Kenon and Talen Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kenon | $871.63 million | 4.13 | $66.27 million | $1.04 | 66.38 |
| Talen Energy | $2.58 billion | 5.88 | -$219.00 million | ($4.17) | -76.02 |
Kenon has higher earnings, but lower revenue than Talen Energy. Talen Energy is trading at a lower price-to-earnings ratio than Kenon, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
13.4% of Kenon shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Comparatively, 0.8% of Talen Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Talen Energy beats Kenon on 9 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 Talen Energy
Talen Energy Corporation is a U.S.-based energy and power generation company. The Company owns or controls approximately 16,000 megawatts of capacity in wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. The Company generates and sells electricity, capacity and related products from power plants that use fuel sources, such as nuclear, natural gas and coal. The Company’s Susquehanna nuclear power plant has approximately two boiling water reactors with a combined capacity of over 2,600 megawatts. Its fossil fuel plants are located in Athens, Barney Davis, Bayonne, Brandon Shores, Brunner Island, Camden, Colstrip and Dartmouth, among others. It has an art energy trading center located in Allentown, Pennsylvania (PA), where it manages asset load obligations, fuel supply, capacity and related products, and all supporting physical or financial transactions for its electric generation portfolio.
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