Kenon Holdings Ltd. (KEN) vs Vistra Corp. (VST)

Kenon Holdings Ltd. and Vistra Corp. are both Utilities Independent Power Producers companies. Vistra Corp. is the larger, with a market value of $46.7B against $3.3B — 14.1× the size. Kenon Holdings Ltd. trades at the lower P/E: 22.7× against 23.1×. Kenon Holdings Ltd. grew revenue faster over the last twelve months: 53.4% against 3.80%. Vistra Corp. has the higher net margin (10.6% vs 10.0%) and the higher return on invested capital (9.05% vs 1.32%). Both pay a dividend; Kenon Holdings Ltd. yields more (11.0% vs 1.95%). Across the 22 metrics below, Vistra Corp. leads on 13 and Kenon Holdings Ltd. on 9.

Valuation

Metric KEN VST Utilities Independent Power Producers median
P/E 22.67 23.08 25.63
P/S 2.78 2.43 2.78
P/B 0.97 15.45 3.29
Price to free cash flow n/m 19.24 —
EV/EBITDA 23.59 10.37 13.69
EV/Sales 3.79 3.42 3.62
Earnings yield 4.41% 4.33% 2.03%
Free cash flow yield (7.91%) 5.20% (1.89%)

Profitability

Metric KEN VST Utilities Independent Power Producers median
Gross margin 18.66% 37.99% 37.99%
Operating margin 8.20% 18.55% 4.83%
Net margin 10.03% 10.55% 1.18%
Free cash flow margin (21.25%) 12.62% 0.50%
Return on equity 3.98% 75.38% 1.70%
Return on assets 2.06% 5.02% 0.93%
Return on invested capital 1.32% 9.05% 2.93%

Growth

Metric KEN VST Utilities Independent Power Producers median
Revenue growth (TTM) 53.35% 3.80% 12.80%
EPS growth (last fiscal year) (96.74%) (68.86%) —
Revenue growth, 5-year CAGR 17.67% 9.16% 15.82%
Net income growth, 5-year CAGR (33.43%) 3.41% 1.71%

Health

Metric KEN VST Utilities Independent Power Producers median
Debt to equity 0.88 3.57 0.74
Current ratio 3.22 0.97 1.21
Net debt to EBITDA 1.70 3.71 3.88

Dividend

Metric KEN VST Utilities Independent Power Producers median
Dividend yield 10.97% 1.95% —
Payout ratio 2.37 0.22 0.17

Size

Metric KEN VST Utilities Independent Power Producers median
Market cap 3.32b 46.65b 11.01b

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