Ormat Technologies (NYSE:ORA) and CLP (OTCMKTS:CLPHY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Volatility and Risk
Ormat Technologies has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, CLP has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
This is a summary of current recommendations for Ormat Technologies and CLP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ormat Technologies presently has a consensus price target of $60.00, indicating a potential downside of 4.91%. Given Ormat Technologies’ higher possible upside, research analysts clearly believe Ormat Technologies is more favorable than CLP.
Earnings & Valuation
This table compares Ormat Technologies and CLP’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ormat Technologies||$719.27 million||4.45||$97.97 million||$2.08||30.34|
|CLP||$11.66 billion||2.41||$1.76 billion||$0.68||16.36|
CLP has higher revenue and earnings than Ormat Technologies. CLP is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
75.1% of Ormat Technologies shares are held by institutional investors. Comparatively, 0.1% of CLP shares are held by institutional investors. 0.8% 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.
Ormat Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.7%. CLP pays an annual dividend of $0.29 per share and has a dividend yield of 2.6%. Ormat Technologies pays out 21.2% of its earnings in the form of a dividend. CLP pays out 42.6% 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.
This table compares Ormat Technologies and CLP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ormat Technologies beats CLP on 11 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, New Zealand, and internationally. The company operates through three segments: Electricity, Product, and Other. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, 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, solar photovoltaic, 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. The Other segment offers energy storage, demand response, and energy management related services. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.
CLP Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, wind, hydro, solar, and oil sources. As of December 31, 2018, it had equity generating capacity of 19,108 megawatts (MW) and purchasing capacity of 4,597 MW. The company is also involved in the provision of pumped storage and engineering services; research and development, and property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.
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