Kenon Holdings (NYSE: KEN) and Pampa Energia (NYSE:PAM) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Volatility & Risk

Kenon Holdings has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Kenon Holdings and Pampa Energia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kenon Holdings 0 0 0 0 N/A
Pampa Energia 0 1 1 0 2.50

Pampa Energia has a consensus price target of $72.00, indicating a potential upside of 1.25%. Given Pampa Energia’s higher probable upside, analysts plainly believe Pampa Energia is more favorable than Kenon Holdings.

Profitability

This table compares Kenon Holdings and Pampa Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kenon Holdings -5.10% -8.83% -1.54%
Pampa Energia 3.37% 11.62% 2.17%

Institutional and Insider Ownership

0.9% of Kenon Holdings shares are held by institutional investors. Comparatively, 44.4% of Pampa Energia shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kenon Holdings and Pampa Energia’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kenon Holdings $2.08 billion 0.43 $522.12 million ($7.38) -2.28
Pampa Energia $3.11 billion 1.68 $723.59 million $1.44 49.38

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

Summary

Pampa Energia beats Kenon Holdings on 11 of the 11 factors compared between the two stocks.

About Kenon Holdings

Kenon Holdings Ltd. is a holding company that operates primarily growth-oriented businesses. The Company’s segments include I.C. Power Asia Development Ltd (IC Power), Qoros Automotive Co., Ltd. (Qoros) and Other. I.C. Power, through its subsidiary companies, is engaged in the production, operation and sale of electricity in countries in Latin America, the Caribbean region and Israel. Qoros is an automotive company. Its other activities include shipping services and renewable energy businesses. The Company also holds interests in ZIM Integrated Shipping Services, Ltd. (ZIM), which is a provider of container shipping services, and Primus Green Energy, Inc. (Primus), which is a developer and owner of a natural gas-to-liquid technology process. IC Power is an owner, developer and operator of power generation facilities, and operates power distribution business. Qoros offers approximately three vehicle models, which include the Qoros 3 Sedan, the Qoros 3 Hatch and the Qoros 3 City SUV.

About Pampa Energia

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

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