Ameresco (NYSE:AMRC – Get Free Report) and Ormat Technologies (NYSE:ORA – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Ameresco and Ormat Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ameresco | 3.34% | 7.00% | 1.74% |
| Ormat Technologies | 14.49% | 5.47% | 2.43% |
Analyst Ratings
This is a summary of recent ratings and price targets for Ameresco and Ormat Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ameresco | 1 | 3 | 7 | 1 | 2.67 |
| Ormat Technologies | 0 | 4 | 7 | 1 | 2.75 |
Earnings & Valuation
This table compares Ameresco and Ormat Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ameresco | $1.88 billion | 0.88 | $56.76 million | $1.19 | 26.29 |
| Ormat Technologies | $944.25 million | 6.93 | $123.73 million | $2.18 | 49.40 |
Ormat Technologies has lower revenue, but higher earnings than Ameresco. Ameresco is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ameresco has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Insider and Institutional Ownership
99.2% of Ameresco shares are held by institutional investors. Comparatively, 95.5% of Ormat Technologies shares are held by institutional investors. 45.0% of Ameresco shares are held by company insiders. Comparatively, 0.6% of Ormat Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Ormat Technologies beats Ameresco on 7 of the 13 factors compared between the two stocks.
About Ameresco
Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, Europe, and internationally. It operates through U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and All Other segments. The company offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. In addition, the company offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services; and operates wind farms. It serves the federal, state, local governments, healthcare and educational institutions, airports, public housing authorities and public universities, municipal utilities, and commercial and industrial customers. As of December 31, 2023, the company owned and operated 185 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.
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.
Receive News & Ratings for Ameresco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ameresco and related companies with MarketBeat.com's FREE daily email newsletter.
