Reviewing Enel Chile (NYSE:ENIC) and Kenon (KEN)

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

Volatility and Risk

Enel Chile has a beta of -0.86, indicating that its stock price is 186% less volatile than the S&P 500. Comparatively, Kenon has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Dividends

Enel Chile pays an annual dividend of $0.16 per share and has a dividend yield of 2.7%. Kenon does not pay a dividend.

Earnings & Valuation

This table compares Enel Chile and Kenon’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Chile $3.30 billion 1.79 $499.40 million N/A N/A
Kenon $1.87 billion 0.85 -$411.93 million ($1.50) -19.81

Enel Chile has higher revenue and earnings than Kenon.

Institutional and Insider Ownership

6.4% of Enel Chile shares are owned by institutional investors. Comparatively, 1.0% of Kenon shares are owned by institutional investors. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Enel Chile N/A N/A N/A
Kenon -3.75% -7.28% -1.28%

Analyst Ratings

This is a breakdown of current ratings and price targets for Enel Chile and Kenon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Chile 2 0 0 0 1.00
Kenon 0 0 0 0 N/A

Summary

Enel Chile beats Kenon on 8 of the 9 factors compared between the two stocks.

About Enel Chile

Enel Chile SA is a Chile-based electricity utility company. The Company, through its combined entities and affiliates, is engaged in the generation, transmission and distribution of electricity businesses. The Company’s segments include Generation, Distribution, and Other businesses and intercompany transaction adjustments. It owns and operates electricity generation units in Chile through its subsidiaries, Empresa Nacional de Electricidad SA, Empresa Electrica Pehuenche SA, Compania Electrica Tarapaca SA and GasAtacama SA. The Company’s electricity distribution business is conducted through Chilectra Chile SA, an electricity distribution company. The Company’s combined entity, Servicios Informaticos e Inmobiliarios Ltda, is a business consultancy that provides consulting, management, administration and contract operations related to information systems, technological information, telecommunications and control systems in South America.

About Kenon

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.

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