Kenon (NYSE:KEN – Get Free Report) and Alliant Energy (NASDAQ:LNT – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Volatility & Risk
Kenon has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Alliant Energy has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Profitability
This table compares Kenon and Alliant Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kenon | 7.60% | 3.17% | 1.94% |
| Alliant Energy | 18.58% | 11.37% | 3.38% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kenon | 0 | 1 | 0 | 0 | 2.00 |
| Alliant Energy | 0 | 4 | 9 | 0 | 2.69 |
Alliant Energy has a consensus price target of $76.60, suggesting a potential upside of 6.85%. Given Alliant Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Alliant Energy is more favorable than Kenon.
Institutional & Insider Ownership
13.4% of Kenon shares are held by institutional investors. Comparatively, 79.9% of Alliant Energy shares are held by institutional investors. 0.1% of Kenon shares are held by insiders. Comparatively, 0.3% of Alliant Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds 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 4.2%. Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 3.0%. Kenon pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alliant Energy pays out 67.1% of its earnings in the form of a dividend. Kenon has raised its dividend for 2 consecutive years and Alliant Energy has raised its dividend for 22 consecutive years.
Earnings & Valuation
This table compares Kenon and Alliant Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kenon | $871.63 million | 5.43 | $66.27 million | $0.77 | 117.99 |
| Alliant Energy | $4.36 billion | 4.24 | $810.00 million | $3.19 | 22.47 |
Alliant Energy has higher revenue and earnings than Kenon. Alliant 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
Alliant Energy beats Kenon on 13 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 Alliant Energy
Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.
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