OGE Energy Corporation (NYSE: OGE) and Kenon Holdings (NYSE:KEN) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares OGE Energy Corporation and Kenon Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OGE Energy Corporation 16.69% 11.04% 3.76%
Kenon Holdings -5.10% -8.83% -1.54%

Valuation & Earnings

This table compares OGE Energy Corporation and Kenon Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
OGE Energy Corporation $2.26 billion 3.15 $338.20 million $1.91 18.65
Kenon Holdings $1.87 billion 0.47 -$411.93 million ($7.38) -2.24

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for OGE Energy Corporation and Kenon Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy Corporation 1 5 1 0 2.00
Kenon Holdings 0 0 0 0 N/A

OGE Energy Corporation currently has a consensus target price of $36.67, suggesting a potential upside of 2.91%. Given OGE Energy Corporation’s higher possible upside, equities analysts plainly believe OGE Energy Corporation is more favorable than Kenon Holdings.

Institutional & Insider Ownership

62.5% of OGE Energy Corporation shares are owned by institutional investors. Comparatively, 0.9% of Kenon Holdings shares are owned by institutional investors. 0.5% of OGE Energy Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

OGE Energy Corporation has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Kenon Holdings has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Dividends

OGE Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 3.7%. Kenon Holdings does not pay a dividend. OGE Energy Corporation pays out 69.6% of its earnings in the form of a dividend. OGE Energy Corporation has raised its dividend for 10 consecutive years.

Summary

OGE Energy Corporation beats Kenon Holdings on 13 of the 15 factors compared between the two stocks.

OGE Energy Corporation Company Profile

OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.

Kenon Holdings Company Profile

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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