Ormat Technologies (NYSE: ORA) and Calpine Corporation (NYSE:CPN) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.
This table compares Ormat Technologies and Calpine Corporation’s net margins, return on equity and return on assets.
This is a summary of recent recommendations for Ormat Technologies and Calpine Corporation, as reported by MarketBeat.
Ormat Technologies presently has a consensus price target of $65.43, suggesting a potential upside of 8.78%. Calpine Corporation has a consensus price target of $14.63, suggesting a potential upside of 1.42%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Ormat Technologies is more favorable than Calpine Corporation.
Risk and Volatility
Ormat Technologies has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Calpine Corporation has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Earnings and Valuation
This table compares Ormat Technologies and Calpine Corporation’s revenue, earnings per share and valuation.
Calpine Corporation has higher revenue and earnings than Ormat Technologies. Ormat Technologies is trading at a lower price-to-earnings ratio than Calpine Corporation, 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 0.5%. Calpine Corporation does not pay a dividend. Ormat Technologies pays out 16.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
46.0% of Ormat Technologies shares are owned by institutional investors. Comparatively, 93.2% of Calpine Corporation shares are owned by institutional investors. 23.0% of Ormat Technologies shares are owned by company insiders. Comparatively, 1.2% of Calpine Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Ormat Technologies beats Calpine Corporation on 11 of the 15 factors compared between the two stocks.
About Ormat Technologies
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.
About Calpine Corporation
Calpine Corporation is a power generation company. The Company is engaged in the ownership and operation of primarily natural gas-fired and geothermal power plants in North America. The Company’s segments include West (including geothermal), Texas and East (including Canada). In the Northeast and Mid-Atlantic regions, the Company has generating units capable of burning either natural gas or fuel oil. As of December 31, 2016, the Company’s portfolio consisted of two types of power generation technologies, including natural gas-fired combustion turbines, such as combined-cycle plants, and renewable geothermal conventional steam turbines. As of December 31, 2016, the Company’s portfolio included 80 power plants, including one under construction, with an aggregate generation capacity of 25,908 Megawatt (MW) and 828 MW under construction. As of December 31, 2016, it had four MW of capacity from solar power generation technology at its Vineland Solar Energy Center in New Jersey.