Siemens Energy (OTCMKTS:SMNEY) & Kenon (NYSE:KEN) Critical Contrast

Siemens Energy (OTCMKTS:SMNEY) and Kenon (NYSE:KEN) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Siemens Energy	4.75%	18.48%	3.50%
Kenon	10.03%	4.46%	2.42%

Earnings & Valuation

This table compares Siemens Energy and Kenon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens Energy	$43.21 billion	2.47	$1.56 billion	$2.44	51.07
Kenon	$871.63 million	3.78	$66.27 million	$1.79	35.31

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

Institutional and Insider Ownership

13.4% of Kenon shares are held by institutional investors. 0.1% of Kenon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Siemens Energy pays an annual dividend of $0.53 per share and has a dividend yield of 0.4%. Kenon pays an annual dividend of $3.85 per share and has a dividend yield of 6.1%. Siemens Energy pays out 21.7% of its earnings in the form of a dividend. Kenon pays out 215.1% 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 raised its dividend for 2 consecutive years. Kenon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Siemens Energy and Kenon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens Energy	0	2	7	0	2.78
Kenon	0	1	0	0	2.00

Risk & Volatility

Siemens Energy has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Kenon has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Summary

Siemens Energy beats Kenon on 9 of the 15 factors compared between the two stocks.

About Siemens Energy

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

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.