Contrasting Ormat Technologies (ORA) and The Competition

Ormat Technologies (NYSE: ORA) is one of 83 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare Ormat Technologies to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Ormat Technologies 15.36% 10.25% 4.97%
Ormat Technologies Competitors -10.90% 3.28% 0.51%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Ormat Technologies $720.40 million $336.78 million 26.73
Ormat Technologies Competitors $7.32 billion $2.16 billion 30.31

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ormat Technologies and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ormat Technologies 0 1 6 0 2.86
Ormat Technologies Competitors 694 3237 2436 52 2.29

Ormat Technologies presently has a consensus target price of $65.43, suggesting a potential upside of 11.77%. As a group, “Electric Utilities” companies have a potential upside of 5.08%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Ormat Technologies is more favorable than its peers.

Volatility & Risk

Ormat Technologies has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Ormat Technologies’ peers have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.

Dividends

Ormat Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Ormat Technologies pays out 14.6% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

46.4% of Ormat Technologies shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 23.0% of Ormat Technologies shares are held by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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

Ormat Technologies Company Profile

Ormat Technologies, Inc. is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal and recovered energy-based power plants. Its equipment manufacturing operations are located in Israel. It conducts its business activities in two business segments: Electricity segment and Product segment. The Electricity segment develops, builds, owns and operates geothermal and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world, and sells the electricity it generates. The Product Segment designs, manufactures and sells equipment for geothermal and recovered energy-based electricity generation and remote power units, and provide services relating to the engineering, procurement, construction, operation and maintenance of geothermal, and recovered energy-based power plants. It manufactures products that produce electricity from recovered energy or waste heat.

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