Contrasting of Ameren Corporation (AEE) and Ormat Technologies Inc. (NYSE:ORA)

We will be contrasting the differences between Ameren Corporation (NYSE:AEE) and Ormat Technologies Inc. (NYSE:ORA) as far as risk, analyst recommendations, institutional ownership, profitability, dividends, earnings and valuation are concerned. The two businesses are rivals in the Electric Utilities industry.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ameren Corporation 6.01B 2.98 815.00M 3.32 21.48
Ormat Technologies Inc. 719.27M 3.90 97.97M 2.83 19.77

Table 1 demonstrates Ameren Corporation and Ormat Technologies Inc.’s top-line revenue, earnings per share and valuation. Ormat Technologies Inc. appears to has lower revenue and earnings than Ameren Corporation. The business with the higher price-to-earnings out of the two companies is considered for more expensive of the two firms presently. Ameren Corporation’s shares have been trading at higher price-to-earnings ratio which means it is presently more expensive than Ormat Technologies Inc.

Profitability

Table 2 provides Ameren Corporation and Ormat Technologies Inc.’s return on assets, return on equity and net margins.

Net Margins Return on Equity Return on Assets
Ameren Corporation 13.56% 8.4% 2.3%
Ormat Technologies Inc. 13.62% 12.3% 5.5%

Risk and Volatility

Ameren Corporation is 69.00% less volatile than Standard & Poor’s 500 because the stock has a beta of 0.31. Competitively, Ormat Technologies Inc.’s 26.00% volatility makes it more volatile than Standard & Poor’s 500, because of the 1.26 beta.

Liquidity

The Current Ratio of Ameren Corporation is 0.6 while its Quick Ratio stands at 0.4. The Current Ratio of rival Ormat Technologies Inc. is 1.1 and its Quick Ratio is has 0.8. Ormat Technologies Inc. is better equipped to clear short and long-term obligations than Ameren Corporation.

Dividends

Ameren Corporation pays out a $1.85 per share dividend on a yearly basis and it also offers 2.55% dividend yield. On the other side Ormat Technologies Inc. pays an annual dividend of $0.41 per share. It’s dividend yield is 0.75%.

Analyst Recommendations

Ameren Corporation and Ormat Technologies Inc. Recommendations and Ratings are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Ameren Corporation 0 4 1 2.20
Ormat Technologies Inc. 0 1 0 2.00

$70.8 is Ameren Corporation’s consensus price target while its potential downside is -3.12%. Meanwhile, Ormat Technologies Inc.’s consensus price target is $60, while its potential upside is 8.48%. The results from earlier shows that analysts opinion suggest that Ormat Technologies Inc. seems more appealing than Ameren Corporation.

Insider and Institutional Ownership

Institutional investors owned 74.8% of Ameren Corporation shares and 77.4% of Ormat Technologies Inc. shares. About 0.7% of Ameren Corporation’s share are owned by insiders. Insiders Comparatively, owned 0.03% of Ormat Technologies Inc. shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Ameren Corporation 0.59% 2.83% 4.68% 12.35% 32.13% 9.31%
Ormat Technologies Inc. -3.05% -3.1% 1.05% 5.37% -3% 6.92%

For the past year Ameren Corporation’s stock price has bigger growth than Ormat Technologies Inc.

Summary

Ameren Corporation beats on 11 of the 17 factors Ormat Technologies Inc.

Ameren Corporation operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The company is involved in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas transmission and distribution businesses. It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, methane gas, and solar. The company serves residential, commercial, and industrial customers. It serves 2.4 million electric customers and approximately 900,000 natural gas customers. The company was founded in 1881 and is headquartered in St. Louis, Missouri.

Ormat Technologies, Inc. engages in geothermal and recovered energy power business worldwide. The company operates in two segments, Electricity and Product. 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 and recovered energy-based electricity generation, such as fossil fuel powered turbo-generators and heavy duty direct-current generators. It also provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. This 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. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.

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