Contrasting Ormat Technologies (ORA) and Entergy Corporation (ETR)
Ormat Technologies (NYSE: ORA) and Entergy Corporation (NYSE:ETR) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitabiliy, dividends, valuation and institutional ownership.
This is a breakdown of recent ratings and price targets for Ormat Technologies and Entergy Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ormat Technologies presently has a consensus price target of $65.43, suggesting a potential upside of 15.48%. Entergy Corporation has a consensus price target of $78.25, suggesting a potential upside of 1.83%. Given Ormat Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ormat Technologies is more favorable than Entergy Corporation.
Volatility and Risk
Ormat Technologies has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Entergy Corporation has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
Valuation & Earnings
This table compares Ormat Technologies and Entergy Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ormat Technologies||$720.40 million||3.91||$333.80 million||$2.19||25.87|
|Entergy Corporation||$10.98 billion||1.26||$3.56 billion||($4.99)||-15.40|
Entergy Corporation has higher revenue and earnings than Ormat Technologies. Entergy Corporation is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.
Ormat Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Entergy Corporation pays an annual dividend of $3.48 per share and has a dividend yield of 4.5%. Ormat Technologies pays out 14.6% of its earnings in the form of a dividend. Entergy Corporation pays out -69.7% 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. Ormat Technologies has increased its dividend for 2 consecutive years. Entergy Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Ormat Technologies and Entergy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
45.9% of Ormat Technologies shares are owned by institutional investors. Comparatively, 83.3% of Entergy Corporation shares are owned by institutional investors. 23.0% of Ormat Technologies shares are owned by company insiders. Comparatively, 0.2% of Entergy Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Ormat Technologies beats Entergy Corporation on 10 of the 16 factors compared between the two stocks.
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.
Entergy Corporation Company Profile
Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.
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