Head-To-Head Analysis: ReNew Energy Global (NASDAQ:RNW) & Ormat Technologies (NYSE:ORA)

ReNew Energy Global (NASDAQ:RNWGet Rating) and Ormat Technologies (NYSE:ORAGet Rating) 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 profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Risk & Volatility

ReNew Energy Global has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares ReNew Energy Global and Ormat Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ReNew Energy Global -14.54% -8.78% -1.73%
Ormat Technologies 9.27% 3.69% 1.65%

Insider and Institutional Ownership

38.5% of ReNew Energy Global shares are owned by institutional investors. Comparatively, 92.4% of Ormat Technologies shares are owned by institutional investors. 1.3% of Ormat Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares ReNew Energy Global and Ormat Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ReNew Energy Global $912.00 million 2.60 -$211.00 million ($0.35) -16.89
Ormat Technologies $663.08 million 7.61 $62.09 million $1.19 75.63

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

Analyst Recommendations

This is a summary of current recommendations and price targets for ReNew Energy Global and Ormat Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReNew Energy Global 0 0 2 0 3.00
Ormat Technologies 0 4 1 0 2.20

ReNew Energy Global currently has a consensus price target of $22.00, indicating a potential upside of 272.25%. Ormat Technologies has a consensus price target of $87.00, indicating a potential downside of 3.33%. Given ReNew Energy Global’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ReNew Energy Global is more favorable than Ormat Technologies.

Summary

Ormat Technologies beats ReNew Energy Global on 10 of the 14 factors compared between the two stocks.

About ReNew Energy Global

(Get Rating)

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through Wind Power and Solar Power segments. It develops, builds, owns, and operates utility scale wind and solar energy projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company also provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. As of March 31, 2022, its portfolio consisted of 10.69 GW of wind and solar energy projects, hydro, firm power projects, and distributed solar energy projects, of which 7.57 GW projects were commissioned and 3.12 GW were committed. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

About Ormat Technologies

(Get Rating)

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. It operates through 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, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal 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 Energy Storage segment offers energy storage and related services, as well as services relating to the engineering, procurement, construction, operation, and maintenance of energy storage units. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.

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