Contrasting Kenon (NYSE:KEN) & Spruce Power (NYSE:SPRU)

Spruce Power (NYSE:SPRU) and Kenon (NYSE:KEN) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares Spruce Power and Kenon”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$79.72 million	0.62	-$65.83 million	($2.68)	-1.00
Kenon	$734.80 million	1.92	-$235.98 million	($4.13)	-6.32

Spruce Power has higher earnings, but lower revenue than Kenon. Kenon is trading at a lower price-to-earnings ratio than Spruce Power, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Spruce Power has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Kenon has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-76.20%	-10.61%	-2.61%
Kenon	-10.61%	-9.48%	-4.70%

Analyst Recommendations

This is a breakdown of current recommendations for Spruce Power and Kenon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	0	0	0	0	N/A
Kenon	0	0	0	0	N/A

Institutional & Insider Ownership

20.8% of Spruce Power shares are owned by institutional investors. Comparatively, 13.4% of Kenon shares are owned by institutional investors. 9.6% of Spruce Power shares are owned by company insiders. Comparatively, 0.1% of Kenon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Spruce Power beats Kenon on 6 of the 11 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

About Kenon

Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates through OPC Power Plants, CPV Group, and ZIM segments. The company engages in the generation and supply of electricity and energy; development, construction, and management of solar and wind energy, and conventional natural gas-fired power plants; and provision of container liner shipping services. It also operates a fleet of 150 vessels. Kenon Holdings Ltd. was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. operates as a subsidiary of Ansonia Holdings Singapore B.V.