Head to Head Comparison: Ormat Technologies (ORA) versus Its Competitors

Ormat Technologies (NYSE:ORA) is one of 141 public companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it contrast to its rivals? We will compare Ormat Technologies to related companies based on the strength of its institutional ownership, profitability, earnings, valuation, analyst recommendations, dividends and risk.

Risk & Volatility

Ormat Technologies has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Ormat Technologies’ rivals have a beta of 0.50, suggesting that their average stock price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ormat Technologies and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ormat Technologies	$1.21 billion	$123.90 million	43.46
Ormat Technologies Competitors	$35.63 billion	$816.69 million	0.52

Ormat Technologies’ rivals have higher revenue and earnings than Ormat Technologies. Ormat Technologies is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Ormat Technologies and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ormat Technologies	0	7	8	1	2.62
Ormat Technologies Competitors	964	2989	3826	189	2.41

Ormat Technologies presently has a consensus price target of $124.15, suggesting a potential upside of 32.87%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 141.09%. Given Ormat Technologies’ rivals higher probable upside, analysts plainly believe Ormat Technologies has less favorable growth aspects than its rivals.

Dividends

Ormat Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Ormat Technologies pays out 22.3% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.5% and pay out 191.0% of their earnings in the form of a dividend.

Insider and Institutional Ownership

95.5% of Ormat Technologies shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 0.5% of Ormat Technologies shares are owned by insiders. Comparatively, 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ormat Technologies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ormat Technologies	11.07%	6.90%	2.83%
Ormat Technologies Competitors	-33.87%	10.60%	0.76%

Summary

Ormat Technologies beats its rivals on 9 of the 15 factors compared.

About Ormat Technologies

Ormat Technologies is a renewable energy company that develops, owns and operates geothermal power plants and recovered energy generation facilities. It also provides equipment and services for geothermal projects, including its Ormat Energy Converter technology, which converts heat from geothermal resources and industrial processes into electricity. The company’s activities include project development and engineering, construction, plant operation and maintenance, and energy storage. Its geothermal and energy storage operations serve markets in the United States and internationally, including countries in Central America, the Caribbean, Africa and Asia.