Contrasting Kenon (NYSE:KEN) & Boralex (OTCMKTS:BRLXF)

Boralex (OTCMKTS:BRLXF) 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 institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Dividends

Boralex pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Kenon pays an annual dividend of $3.85 per share and has a dividend yield of 5.8%. Boralex pays out -309.1% of its earnings in the form of a dividend. Kenon pays out 370.2% 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 2 consecutive years. Kenon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boralex	N/A	N/A	N/A	($0.13)	-212.71
Kenon	$871.63 million	3.98	$66.27 million	$1.04	63.97

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

Insider & Institutional Ownership

57.0% of Boralex shares are held by institutional investors. Comparatively, 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, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boralex	N/A	N/A	N/A
Kenon	7.98%	3.47%	2.01%

Analyst Ratings

This is a summary of recent recommendations and price targets for Boralex and Kenon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boralex	0	2	1	0	2.33
Kenon	0	1	0	0	2.00

Summary

Kenon beats Boralex on 9 of the 13 factors compared between the two stocks.

About Boralex

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities in Canada, France, the United States, and the United Kingdom. It generates electricity from wind, solar, and hydroelectric resources. As of December 31, 2023, the company operates 100 wind farms; 12 solar energy facilities; 15 hydroelectric power stations; and 2 storage units with an installed capacity of 1,819 megawatts (MW) in North America and 1,259 MW in Europe. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

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.