Pampa Energia (NYSE: PAM) and Kenon Holdings (NYSE:KEN) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This table compares Pampa Energia and Kenon Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Pampa Energia has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Kenon Holdings has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Pampa Energia and Kenon Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pampa Energia presently has a consensus price target of $72.00, suggesting a potential upside of 6.75%. Given Pampa Energia’s higher possible upside, analysts clearly believe Pampa Energia is more favorable than Kenon Holdings.
Institutional & Insider Ownership
44.1% of Pampa Energia shares are owned by institutional investors. Comparatively, 0.9% of Kenon Holdings shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Pampa Energia and Kenon Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pampa Energia||$3.11 billion||1.59||$723.59 million||$1.44||46.84|
|Kenon Holdings||$2.08 billion||0.44||$522.12 million||($7.38)||-2.32|
Pampa Energia has higher revenue and earnings than Kenon Holdings. Kenon Holdings is trading at a lower price-to-earnings ratio than Pampa Energia, indicating that it is currently the more affordable of the two stocks.
Pampa Energia beats Kenon Holdings on 11 of the 11 factors compared between the two stocks.
About Pampa Energia
Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.
About Kenon Holdings
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 countries in Latin America, the Caribbean region and 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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