Kenon (NYSE:KEN) & Spruce Power (NYSE:SPRU) Critical Comparison

Kenon (NYSE:KEN) and Spruce Power (NYSE:SPRU) are both small-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 20.8% of Spruce Power shares are owned by institutional investors. 0.1% of Kenon shares are owned by insiders. Comparatively, 9.6% of Spruce Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenon	-10.61%	-9.48%	-4.70%
Spruce Power	-76.20%	-10.61%	-2.61%

Valuation & Earnings

This table compares Kenon and Spruce Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenon	$734.80 million	1.95	-$235.98 million	($4.13)	-6.44
Spruce Power	$79.72 million	0.62	-$65.83 million	($2.68)	-1.01

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

Risk and Volatility

Kenon has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kenon and Spruce Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenon	0	0	0	0	N/A
Spruce Power	0	0	0	0	N/A

Summary

Spruce Power beats Kenon on 6 of the 11 factors compared between the two stocks.

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.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.