Analyzing OPAL Fuels (NASDAQ:OPAL) & Ormat Technologies (NYSE:ORA)

OPAL Fuels (NASDAQ:OPAL) and Ormat Technologies (NYSE:ORA) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Valuation & Earnings

This table compares OPAL Fuels and Ormat Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPAL Fuels	$348.98 million	1.07	$14.75 million	$0.07	30.86
Ormat Technologies	$989.54 million	8.28	$123.90 million	$2.06	64.70

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

Profitability

This table compares OPAL Fuels and Ormat Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OPAL Fuels	1.33%	-479.62%	0.47%
Ormat Technologies	10.97%	6.61%	2.80%

Volatility & Risk

OPAL Fuels has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

12.2% of OPAL Fuels shares are owned by institutional investors. Comparatively, 95.5% of Ormat Technologies shares are owned by institutional investors. 84.6% of OPAL Fuels shares are owned by company insiders. Comparatively, 0.6% of Ormat Technologies 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for OPAL Fuels and Ormat Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPAL Fuels	2	3	0	0	1.60
Ormat Technologies	0	4	8	0	2.67

OPAL Fuels currently has a consensus price target of $2.72, suggesting a potential upside of 25.77%. Ormat Technologies has a consensus price target of $133.18, suggesting a potential downside of 0.07%. Given OPAL Fuels’ higher possible upside, research analysts plainly believe OPAL Fuels is more favorable than Ormat Technologies.

Summary

Ormat Technologies beats OPAL Fuels on 12 of the 14 factors compared between the two stocks.

About OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.

About Ormat Technologies

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, and internationally. It operates in three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. This segment serves contractors; 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 Energy Storage segment offers battery energy storage systems and related services. Ormat Technologies, Inc. was founded in 1965 and is headquartered in Reno, Nevada.