Financial Survey: Kenon (NYSE:KEN) and Duke Energy (NYSE:DUK)

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

Institutional and Insider Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 65.3% of Duke Energy shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Comparatively, 0.1% of Duke Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Kenon and Duke 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%
Duke Energy	15.49%	9.73%	2.64%

Volatility and Risk

Kenon has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Duke Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Dividends

Kenon pays an annual dividend of $3.85 per share and has a dividend yield of 5.8%. Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.3%. 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. Duke Energy pays out 65.2% of its earnings in the form of a dividend. Kenon has increased its dividend for 2 consecutive years and Duke Energy has increased its dividend for 20 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Kenon and Duke Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenon	0	1	0	0	2.00
Duke Energy	0	8	9	0	2.53

Duke Energy has a consensus price target of $138.33, suggesting a potential upside of 7.78%. Given Duke Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Duke Energy is more favorable than Kenon.

Valuation and Earnings

This table compares Kenon and Duke 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	3.96	$66.27 million	$1.04	63.71
Duke Energy	$32.24 billion	3.10	$4.97 billion	$6.53	19.66

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

Summary

Duke Energy beats Kenon on 12 of the 17 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 Duke Energy

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.