Head-To-Head Contrast: Yankuang Energy Group (OTCMKTS:YZCAY) and Ormat Technologies (NYSE:ORA)

Yankuang Energy Group (OTCMKTS:YZCAY) and Ormat Technologies (NYSE:ORA) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

This table compares Yankuang Energy Group and Ormat Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yankuang Energy Group	$17.32 billion	N/A	$1.96 billion	$1.65	8.86
Ormat Technologies	$879.65 million	8.84	$123.73 million	$2.18	58.68

Yankuang Energy Group has higher revenue and earnings than Ormat Technologies. Yankuang Energy Group is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.5% of Ormat Technologies shares are held by institutional investors. 0.6% of Ormat Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Yankuang Energy Group has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Dividends

Yankuang Energy Group pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Ormat Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.4%. Yankuang Energy Group pays out 21.8% of its earnings in the form of a dividend. Ormat Technologies pays out 22.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yankuang Energy Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Yankuang Energy Group and Ormat Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yankuang Energy Group	0	0	0	1	4.00
Ormat Technologies	0	2	8	0	2.80

Ormat Technologies has a consensus price target of $128.00, indicating a potential upside of 0.07%. Given Ormat Technologies’ higher probable upside, analysts clearly believe Ormat Technologies is more favorable than Yankuang Energy Group.

Profitability

This table compares Yankuang Energy Group and Ormat Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yankuang Energy Group	N/A	N/A	N/A
Ormat Technologies	14.12%	5.35%	2.36%

Summary

Ormat Technologies beats Yankuang Energy Group on 10 of the 16 factors compared between the two stocks.

About Yankuang Energy Group

Yankuang Energy Group Company Limited engages in the mining, preparation, and sale of coal in China and internationally. It offers thermal, PCI, and coking coal for electric power, metallurgy, chemical industry, etc.; manufactures, installs, and sells mining equipment and machinery; manufactures and sells coal mining and excavating equipment, cable, and rubber products; manufactures and sells methanol, acetic acid, ethyl acetate, caprolactam, naphtha, crude liquid wax, etc.; produces and sells chemicals and synthesis catalyst; explores for potash mineral; and sells coal mine machinery equipment and accessories, construction materials, petroleum products, and mineral products. The company also provides electricity and related heat supply; railway, river, and lakes transportation; coal mining technology development, transfer, and consultation; underground mines and coal mine management; supply chain management; factoring; engineering; water pollution control; equity investment fund and corporate asset management, investment advisory and corporate management, foreign investment fund, and trading services; solar and wind power, and production management; and financial services, as well as operates as a trade broker and agent. In addition, it engages in the processing, sale, and transportation of coal; coal resource exploration development; LTCC technology development and equipment rental activities; house and financial leasing; wholesale of coal and non-ferrous metals; real estate development and operation, and property management; investment and management of mineral resources; and logistics storage and leasing activities. The company was formerly known as Yanzhou Coal Mining Company Limited and changed its name to Yankuang Energy Group Company Limited in December 2021. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yankuang Energy Group Company Limited is a subsidiary of Shandong Energy Group Co.,Ltd.

About Ormat Technologies

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, and internationally. It operates in three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. This segment serves contractors; 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 Energy Storage segment offers battery energy storage systems and related services. Ormat Technologies, Inc. was founded in 1965 and is headquartered in Reno, Nevada.