Analyzing Kenon (NYSE:KEN) and Power Assets (OTCMKTS:HGKGY)

Insider & Institutional Ownership

13.4% of Kenon shares are held by institutional investors. 0.1% of Kenon shares are held by insiders. Comparatively, 1.0% of Power Assets shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Kenon and Power Assets”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenon	$774.30 million	3.16	$597.67 million	$3.20	14.65
Power Assets	$117.77 million	117.08	$784.46 million	N/A	N/A

Power Assets has lower revenue, but higher earnings than Kenon.

Risk and Volatility

Kenon has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenon	63.80%	-2.32%	-1.38%
Power Assets	N/A	N/A	N/A

Dividends

Kenon pays an annual dividend of $4.80 per share and has a dividend yield of 10.2%. Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 7.4%. Kenon pays out 150.0% 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.

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 Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.