Critical Review: Kenon (NYSE:KEN) vs. Oklo (NYSE:OKLO)

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

Analyst Ratings

This is a summary of recent recommendations for Kenon and Oklo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenon	0	0	0	0	0.00
Oklo	0	2	2	0	2.50

Oklo has a consensus price target of $15.33, indicating a potential downside of 35.06%. Given Oklo’s stronger consensus rating and higher possible upside, analysts plainly believe Oklo is more favorable than Kenon.

Volatility and Risk

Kenon has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Oklo has a beta of -0.57, meaning that its share price is 157% less volatile than the S&P 500.

Valuation & Earnings

This table compares Kenon and Oklo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenon	$742.80 million	2.19	-$235.98 million	$3.20	9.41
Oklo	N/A	N/A	$11.87 million	N/A	N/A

Oklo has lower revenue, but higher earnings than Kenon.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenon	22.88%	2.93%	1.45%
Oklo	N/A	-32.11%	-13.72%

Institutional & Insider Ownership

13.4% of Kenon shares are owned by institutional investors. Comparatively, 85.0% of Oklo shares are owned by institutional investors. 0.1% of Kenon shares are owned by company insiders. Comparatively, 21.8% of Oklo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

About Oklo

Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.