Ormat Technologies (NYSE:ORA) and Datang Intl Power Generation (OTCMKTS:DIPGY) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
75.1% of Ormat Technologies shares are owned by institutional investors. 0.8% of Ormat Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Ormat Technologies and Datang Intl Power Generation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Datang Intl Power Generation||0||0||0||0||N/A|
Ormat Technologies currently has a consensus target price of $60.00, indicating a potential downside of 4.99%. Given Ormat Technologies’ higher probable upside, analysts clearly believe Ormat Technologies is more favorable than Datang Intl Power Generation.
This table compares Ormat Technologies and Datang Intl Power Generation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Datang Intl Power Generation||1.03%||1.47%||0.35%|
Earnings and Valuation
This table compares Ormat Technologies and Datang Intl Power Generation’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||4.46||$97.97 million||$2.08||30.36|
|Datang Intl Power Generation||$14.11 billion||0.31||$186.19 million||$0.22||21.27|
Datang Intl Power Generation has higher revenue and earnings than Ormat Technologies. Datang Intl Power Generation is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ormat Technologies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Datang Intl Power Generation has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.
Ormat Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.7%. Datang Intl Power Generation pays an annual dividend of $0.24 per share and has a dividend yield of 5.1%. Ormat Technologies pays out 21.2% of its earnings in the form of a dividend. Datang Intl Power Generation pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Ormat Technologies beats Datang Intl Power Generation 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.
About Datang Intl Power Generation
Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation, and power plant development in the People's Republic of China. It operates through Power Generation, Coal, and Other segments. The company generates electricity through various sources, such as coal-fired, thermal, hydro, wind, nuclear, solar, and natural gas. As of December 31, 2017, it managed an installed capacity of approximately 48,031.175 MW. The company also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminium smelting; the production and sale of alumina; cargo shipping; the sale of coal ash and integrated application of solid wastes; the repair and testing of power equipment; and the provision of power related technical services. The company was formerly known as Beijing Datang Power Generation Co., Ltd. The company was founded in 1994 and is headquartered in Beijing, the People's Republic of China. Datang International Power Generation Co., Ltd. is a subsidiary of China Datang Corporation Limited.
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