Ormat Technologies (ORA) vs. Its Rivals Critical Analysis

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

Earnings & Valuation

This table compares Ormat Technologies and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ormat Technologies	$989.54 million	$123.90 million	46.47
Ormat Technologies Competitors	$6.24 billion	$816.69 million	14.60

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.

Dividends

Ormat Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Ormat Technologies pays out 23.6% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.4% and pay out 229.5% of their earnings in the form of a dividend.

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	10.66%	6.61%	2.75%
Ormat Technologies Competitors	-37.05%	13.60%	0.71%

Risk and Volatility

Ormat Technologies has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Ormat Technologies’ rivals have a beta of 0.62, suggesting that their average share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Ormat Technologies and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ormat Technologies	1	6	8	1	2.56
Ormat Technologies Competitors	961	2977	3796	187	2.41

Ormat Technologies currently has a consensus price target of $127.62, indicating a potential upside of 35.27%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 144.35%. Given Ormat Technologies’ rivals higher possible upside, analysts plainly believe Ormat Technologies has less favorable growth aspects than its rivals.

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 company insiders. Comparatively, 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

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, 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.