Head to Head Analysis: Spruce Power (NYSE:SPRU) versus Kenon (NYSE:KEN)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Spruce Power and Kenon, as provided by MarketBeat.

	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

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%

Risk and Volatility

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

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares Spruce Power and Kenon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$79.72 million	0.63	-$65.83 million	($2.68)	-1.02
Kenon	$734.80 million	1.92	-$235.98 million	($4.13)	-6.33

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.

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.