Constellation Energy Corporation (CEG) vs Kenon Holdings Ltd. (KEN)

Constellation Energy Corporation and Kenon Holdings Ltd. are both Utilities Independent Power Producers companies. Constellation Energy Corporation is the larger, with a market value of $92.8B against $3.3B — 28.0× the size. Kenon Holdings Ltd. trades at the lower P/E: 22.7× against 25.6×. Kenon Holdings Ltd. grew revenue faster over the last twelve months: 53.4% against 26.0%. Constellation Energy Corporation has the higher net margin (11.1% vs 10.0%) and the higher return on invested capital (5.66% vs 1.32%). Both pay a dividend; Kenon Holdings Ltd. yields more (11.0% vs 0.88%). Across the 22 metrics below, Constellation Energy Corporation leads on 14 and Kenon Holdings Ltd. on 8.

Valuation

Metric CEG KEN Utilities Independent Power Producers median
P/E 25.63 22.67 25.63
P/S 3.03 2.78 2.78
P/B 2.93 0.97 3.29
Price to free cash flow 306.72 n/m —
EV/EBITDA 13.69 23.59 13.69
EV/Sales 3.62 3.79 3.62
Earnings yield 3.90% 4.41% 2.03%
Free cash flow yield 0.33% (7.91%) (1.89%)

Profitability

Metric CEG KEN Utilities Independent Power Producers median
Gross margin 43.91% 18.66% 37.99%
Operating margin 14.70% 8.20% 4.83%
Net margin 11.08% 10.03% 1.18%
Free cash flow margin 0.99% (21.25%) 0.50%
Return on equity 15.02% 3.98% 1.70%
Return on assets 4.58% 2.06% 0.93%
Return on invested capital 5.66% 1.32% 2.93%

Growth

Metric CEG KEN Utilities Independent Power Producers median
Revenue growth (TTM) 25.98% 53.35% 12.80%
EPS growth (last fiscal year) (37.76%) (96.74%) —
Revenue growth, 5-year CAGR 7.72% 17.67% 15.82%
Net income growth, 5-year CAGR 31.53% (33.43%) 1.71%

Health

Metric CEG KEN Utilities Independent Power Producers median
Debt to equity 0.60 0.88 0.74
Current ratio 1.46 3.22 1.21
Net debt to EBITDA 0.63 1.70 3.88

Dividend

Metric CEG KEN Utilities Independent Power Producers median
Dividend yield 0.88% 10.97% —
Payout ratio 0.36 2.37 0.17

Size

Metric CEG KEN Utilities Independent Power Producers median
Market cap 92.84b 3.32b 11.01b

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