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

Profitability

This table compares Kenon and CEMIG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kenon N/A 41.51% 13.85%
CEMIG 4.26% 6.47% 2.21%

Analyst Recommendations

This is a summary of current ratings and price targets for Kenon and CEMIG, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kenon 0 0 0 0 N/A
CEMIG 0 1 1 0 2.50

Earnings and Valuation

This table compares Kenon and CEMIG’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kenon $366.00 million 2.42 $236.59 million N/A N/A
CEMIG $6.80 billion 0.53 $313.51 million $0.26 10.96

CEMIG has higher revenue and earnings than Kenon.

Volatility and Risk

Kenon has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, CEMIG has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Dividends

CEMIG pays an annual dividend of $0.13 per share and has a dividend yield of 4.6%. Kenon does not pay a dividend. CEMIG pays out 50.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

1.6% of Kenon shares are held by institutional investors. Comparatively, 2.4% of CEMIG shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

CEMIG beats Kenon on 7 of the 11 factors compared between the two stocks.

About Kenon

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 CEMIG

Companhia Energ├ętica de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

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