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

Insider & Institutional Ownership

1.6% of Kenon shares are held by institutional investors. Comparatively, 51.6% of Azure Power Global shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Kenon -34.11% -14.75% -7.38%
Azure Power Global 0.93% 1.70% 0.34%

Dividends

Kenon pays an annual dividend of $1.86 per share and has a dividend yield of 8.9%. Azure Power Global does not pay a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Kenon and Azure Power Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kenon 0 0 0 0 N/A
Azure Power Global 0 1 4 0 2.80

Azure Power Global has a consensus price target of $20.33, indicating a potential upside of 88.27%. Given Azure Power Global’s higher possible upside, analysts clearly believe Azure Power Global is more favorable than Kenon.

Valuation & Earnings

This table compares Kenon and Azure Power Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kenon $364.00 million 3.08 $434.21 million N/A N/A
Azure Power Global $143.52 million 3.09 $1.13 million $0.13 83.08

Kenon has higher revenue and earnings than Azure Power Global.

Volatility and Risk

Kenon has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Azure Power Global has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Azure Power Global beats Kenon on 7 of the 11 factors compared between the two stocks.

Kenon Company Profile

Kenon Holdings Ltd., through its subsidiaries, owns, develops, and operates power generation facilities in Israel. It operates through OPC, Qoros, and Other segments. The company's power generation plants operate on natural gas and diesel. It also designs, manufactures, sells, and services passenger vehicles, parts, and accessories through a network of independent authorized retail dealers in China. As of December 31, 2017, the company's Qoros' dealerships included 113 point of sales facilities. In addition, Kenon Holdings Ltd., through its 32% equity interest in ZIM Integrated Shipping Services, Ltd., owned and chartered vessels with a total container capacity of 385,974 TEUs. Further, it develops and owns a proprietary natural gas-to-liquid technology process. The company was incorporated in 2014 and is based in Singapore.

Azure Power Global Company Profile

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.

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