Head to Head Review: Ormat Technologies (NYSE:ORA) and OPAL Fuels (NASDAQ:OPAL)

Ormat Technologies (NYSE:ORA) and OPAL Fuels (NASDAQ:OPAL) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Ormat Technologies and OPAL Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ormat Technologies	10.97%	6.61%	2.80%
OPAL Fuels	1.33%	-479.62%	0.47%

Earnings and Valuation

This table compares Ormat Technologies and OPAL Fuels”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ormat Technologies	$1.16 billion	6.95	$123.90 million	$2.06	63.84
OPAL Fuels	$348.98 million	0.96	$14.75 million	$0.07	27.71

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

Analyst Ratings

This is a summary of recent ratings for Ormat Technologies and OPAL Fuels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ormat Technologies	0	4	8	0	2.67
OPAL Fuels	2	3	0	0	1.60

Ormat Technologies currently has a consensus price target of $131.64, indicating a potential upside of 0.09%. OPAL Fuels has a consensus price target of $2.72, indicating a potential upside of 40.03%. Given OPAL Fuels’ higher probable upside, analysts clearly believe OPAL Fuels is more favorable than Ormat Technologies.

Risk & Volatility

Ormat Technologies has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, OPAL Fuels has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of Ormat Technologies shares are held by institutional investors. Comparatively, 12.2% of OPAL Fuels shares are held by institutional investors. 0.6% of Ormat Technologies shares are held by company insiders. Comparatively, 84.6% of OPAL Fuels shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ormat Technologies beats OPAL Fuels on 12 of the 14 factors compared between the two stocks.

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.

About OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.