Ormat Technologies (NYSE:ORA) and CENTRAIS ELETRI/S (NYSE:EBR.B) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Institutional & Insider Ownership

71.6% of Ormat Technologies shares are held by institutional investors. Comparatively, 0.1% of CENTRAIS ELETRI/S shares are held by institutional investors. 0.8% of Ormat Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Ormat Technologies and CENTRAIS ELETRI/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ormat Technologies $746.04 million 4.33 $88.10 million $1.46 43.38
CENTRAIS ELETRI/S $6.74 billion 1.13 $2.71 billion N/A N/A

CENTRAIS ELETRI/S has higher revenue and earnings than Ormat Technologies.

Profitability

This table compares Ormat Technologies and CENTRAIS ELETRI/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ormat Technologies 11.93% 4.95% 2.28%
CENTRAIS ELETRI/S 62.26% 6.79% 2.55%

Volatility & Risk

Ormat Technologies has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, CENTRAIS ELETRI/S has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ormat Technologies and CENTRAIS ELETRI/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ormat Technologies 0 4 0 0 2.00
CENTRAIS ELETRI/S 0 0 0 0 N/A

Ormat Technologies presently has a consensus target price of $77.25, suggesting a potential upside of 21.98%. Given Ormat Technologies’ higher probable upside, analysts plainly believe Ormat Technologies is more favorable than CENTRAIS ELETRI/S.

Dividends

Ormat Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.7%. CENTRAIS ELETRI/S pays an annual dividend of $0.33 per share and has a dividend yield of 5.9%. Ormat Technologies pays out 30.1% of its earnings in the form of a dividend.

Summary

CENTRAIS ELETRI/S beats Ormat Technologies on 8 of the 12 factors compared between the two stocks.

Ormat Technologies Company Profile

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, New Zealand, and internationally. The company operates through three segments: Electricity, Product, and Other. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators. This segment also provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal, solar photovoltaic, and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Other segment offers energy storage, demand response, and energy management related services. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.

CENTRAIS ELETRI/S Company Profile

Centrais El├ętricas Brasileiras S.A. – Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through thermal, nuclear, wind, and hydroelectric plants. As of December 31, 2018, it owned and operated 32 hydroelectric plants with a total installed capacity of 44,221.05 megawatts; 105 thermal plants, including coal, and oil and gas power generation units with a total installed capacity of 2,403 megawatts; and 2 nuclear power plants comprising Angra I with an installed capacity of 640 megawatts and Angra II an installed capacity of 1,350 megawatts. It also operates 71,068 kilometers of transmission lines. The company was founded in 1962 and is based in Rio de Janeiro, Brazil.

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