Otter Tail (OTTR) versus Ormat Technologies (ORA) Critical Comparison

Ormat Technologies (NYSE: ORA) and Otter Tail (NASDAQ:OTTR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

How to Become a New Pot Stock Millionaire

70.6% of Ormat Technologies shares are held by institutional investors. Comparatively, 42.0% of Otter Tail shares are held by institutional investors. 14.7% of Ormat Technologies shares are held by company insiders. Comparatively, 1.7% of Otter Tail shares are held by company 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ormat Technologies 0 2 4 0 2.67
Otter Tail 0 3 0 0 2.00

Ormat Technologies currently has a consensus target price of $67.17, indicating a potential upside of 20.39%. Otter Tail has a consensus target price of $44.00, indicating a potential upside of 1.03%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Ormat Technologies is more favorable than Otter Tail.

Risk and Volatility

Ormat Technologies has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Otter Tail has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Ormat Technologies and Otter Tail’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ormat Technologies 22.44% 12.15% 6.02%
Otter Tail 8.53% 10.73% 3.77%

Valuation & Earnings

This table compares Ormat Technologies and Otter Tail’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ormat Technologies $692.81 million 4.07 $155.48 million $2.99 18.66
Otter Tail $849.35 million 2.03 $72.43 million $1.86 23.41

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

Dividends

Ormat Technologies pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Otter Tail pays an annual dividend of $1.34 per share and has a dividend yield of 3.1%. Ormat Technologies pays out 30.8% of its earnings in the form of a dividend. Otter Tail pays out 72.0% 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.

Summary

Ormat Technologies beats Otter Tail on 13 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.

Otter Tail Company Profile

Otter Tail Corporation is a holding company. The Company operates through three segments: Electric, Manufacturing and Plastics. The Electric segment includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by Otter Tail Power Company (OTP). The Manufacturing segment consists of businesses in manufacturing activities, such as contract machining, metal parts stamping, fabrication and painting, and production of material and handling trays and horticultural containers. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States. The Plastics segment consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States. The Company’s manufacturing and plastic pipe businesses are owned by its subsidiary, Varistar Corporation.

Receive News & Ratings for Ormat Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ormat Technologies and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply