Ormat Technologies (NYSE:ORA) and Ocean Power Technologies (NASDAQ:OPTT) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Ormat Technologies pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Ocean Power Technologies does not pay a dividend. Ormat Technologies pays out 13.4% of its earnings in the form of a dividend.
This table compares Ormat Technologies and Ocean Power Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ocean Power Technologies||N/A||-93.88%||-73.13%|
Earnings & Valuation
This table compares Ormat Technologies and Ocean Power Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ormat Technologies||$692.81 million||3.84||$132.41 million||$2.99||17.58|
|Ocean Power Technologies||$510,000.00||19.34||-$10.15 million||N/A||N/A|
Ormat Technologies has higher revenue and earnings than Ocean Power Technologies.
This is a breakdown of recent ratings and target prices for Ormat Technologies and Ocean Power Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ocean Power Technologies||0||0||0||0||N/A|
Ormat Technologies currently has a consensus target price of $66.50, indicating a potential upside of 26.52%. Given Ormat Technologies’ higher possible upside, analysts clearly believe Ormat Technologies is more favorable than Ocean Power Technologies.
Volatility and Risk
Ormat Technologies has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Ocean Power Technologies has a beta of 4.37, meaning that its stock price is 337% more volatile than the S&P 500.
Institutional and Insider Ownership
72.6% of Ormat Technologies shares are owned by institutional investors. Comparatively, 6.6% of Ocean Power Technologies shares are owned by institutional investors. 0.5% of Ormat Technologies shares are owned by company insiders. Comparatively, 2.2% of Ocean Power Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Ormat Technologies beats Ocean Power Technologies on 9 of the 13 factors compared between the two stocks.
About Ormat Technologies
Ormat Technologies, Inc. engages in the geothermal and recovered energy power business worldwide. The company operates through Electricity and Product segments. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells electricity. This segment also offers energy storage, demand response, and energy management related services. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation, 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 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. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.
About Ocean Power Technologies
Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in North America, South America, Europe, Australia, and Asia. It offers PowerBuoy system that generates power for use independent of the power grid in remote offshore locations. The company focuses on serving public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was founded in 1984 and is headquartered in Monroe Township, New Jersey.
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