Ormat Technologies (NYSE:ORA – Get Free Report) and Brookfield Renewable Partners (NYSE:BEP – Get Free Report) are both mid-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Ormat Technologies and Brookfield Renewable Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ormat Technologies | 0 | 7 | 8 | 1 | 2.62 |
| Brookfield Renewable Partners | 0 | 5 | 8 | 0 | 2.62 |
Ormat Technologies presently has a consensus price target of $124.15, indicating a potential upside of 32.80%. Brookfield Renewable Partners has a consensus price target of $36.73, indicating a potential upside of 20.60%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Ormat Technologies is more favorable than Brookfield Renewable Partners.
Profitability
This table compares Ormat Technologies and Brookfield Renewable Partners’ 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% |
| Brookfield Renewable Partners | -1.77% | -0.33% | -0.12% |
Dividends
Ormat Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Brookfield Renewable Partners pays an annual dividend of $1.56 per share and has a dividend yield of 5.1%. Ormat Technologies pays out 22.3% of its earnings in the form of a dividend. Brookfield Renewable Partners pays out -208.0% 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. Brookfield Renewable Partners has raised its dividend for 2 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Ormat Technologies has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Insider and Institutional Ownership
95.5% of Ormat Technologies shares are held by institutional investors. Comparatively, 63.2% of Brookfield Renewable Partners shares are held by institutional investors. 0.5% of Ormat Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Ormat Technologies and Brookfield Renewable Partners”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ormat Technologies | $989.54 million | 5.81 | $123.90 million | $2.15 | 43.48 |
| Brookfield Renewable Partners | $6.54 billion | 1.41 | $3.00 million | ($0.75) | -40.61 |
Ormat Technologies has higher earnings, but lower revenue than Brookfield Renewable Partners. Brookfield Renewable Partners is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Ormat Technologies beats Brookfield Renewable Partners on 12 of the 17 factors compared between the two stocks.
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.
About Brookfield Renewable Partners
Brookfield Renewable Partners L.P. owns and operates a global portfolio of renewable power and sustainable energy assets. Its operations include hydroelectric, wind and solar generation, as well as battery storage and distributed energy businesses. The partnership serves markets across North America, South America, Europe and the Asia-Pacific region. It sells renewable electricity and related services to utilities, businesses and other customers. Brookfield Renewable traces its roots to Brookfield Asset Management’s renewable power business and operates as part of the Brookfield group.
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