Kenon (NYSE: KEN) and TECO Energy (NYSE:TE) are both electric utilities – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

1.0% of Kenon 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Kenon -3.75% -7.28% -1.28%
TECO Energy 0.84% 0.85% 0.24%

Valuation and Earnings

This table compares Kenon and TECO Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kenon $1.87 billion 0.87 -$411.93 million ($1.50) -20.23
TECO Energy N/A N/A N/A $1.06 26.08

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kenon and TECO Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kenon 0 0 0 0 N/A
TECO Energy 0 0 0 0 N/A

Dividends

TECO Energy pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. Kenon does not pay a dividend. TECO Energy pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenon has increased its dividend for 3 consecutive years.

Summary

TECO Energy beats Kenon on 6 of the 10 factors compared between the two stocks.

Kenon Company Profile

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 the country 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.

TECO Energy Company Profile

TECO Energy, Inc. (TECO Energy) is a holding company for regulated utilities and other businesses. TECO Energy holds all of the common stock of Tampa Electric Company (TEC) and through its subsidiary, New Mexico Gas Intermediate, Inc. (NMGI), owns New Mexico Gas Company, Inc. (NMGC). The Company’s segments include Tampa Electric, Peoples Gas System (PGS) and NMGC. Its Tampa Electric division is engaged in the generation, purchase, transmission, distribution and sale of electric energy. The retail territory served comprises an area of approximately 2,000 square miles in West Central Florida. PGS, the gas division of TEC, is engaged in the purchase, distribution and sale of natural gas for residential, commercial, industrial and electric power generation customers in the state of Florida. NMGC is engaged in the purchase, distribution and sale of natural gas for residential, commercial and industrial customers in the state of New Mexico.

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