Ormat Technologies (NYSE:ORA) and Avangrid (NYSE:AGR) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Ormat Technologies and Avangrid, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ormat Technologies | 0 | 2 | 2 | 0 | 2.50 |
Avangrid | 1 | 2 | 2 | 0 | 2.20 |
Ormat Technologies presently has a consensus target price of $96.6667, suggesting a potential upside of 12.84%. Avangrid has a consensus target price of $54.25, suggesting a potential upside of 18.55%. Given Avangrid's higher probable upside, analysts clearly believe Avangrid is more favorable than Ormat Technologies.
Dividends
Ormat Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.5%. Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.8%. Ormat Technologies pays out 30.1% of its earnings in the form of a dividend. Avangrid pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid has increased its dividend for 1 consecutive years. Avangrid is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
77.4% of Ormat Technologies shares are owned by institutional investors. Comparatively, 13.7% of Avangrid shares are owned by institutional investors. 0.8% of Ormat Technologies shares are owned by insiders. Comparatively, 0.1% of Avangrid shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Ormat Technologies has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.
Profitability
This table compares Ormat Technologies and Avangrid's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ormat Technologies | 10.77% | 5.01% | 2.27% |
Avangrid | 10.19% | 4.20% | 1.90% |
Valuation and Earnings
This table compares Ormat Technologies and Avangrid's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ormat Technologies | $746.04 million | 6.41 | $88.10 million | $1.46 | 58.68 |
Avangrid | $6.34 billion | 2.23 | $700 million | $2.17 | 21.09 |
Avangrid has higher revenue and earnings than Ormat Technologies. Avangrid 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 Avangrid on 10 of the 16 factors compared between the two stocks.