Financial Comparison: Advantage Energy (OTCMKTS:AAVVF) vs. Ormat Technologies (NYSE:ORA)

Advantage Energy (OTCMKTS:AAVVF) and Ormat Technologies (NYSE:ORA) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	8.03%	3.28%	1.81%
Ormat Technologies	12.52%	5.21%	2.27%

Insider & Institutional Ownership

7.8% of Advantage Energy shares are held by institutional investors. Comparatively, 95.5% of Ormat Technologies shares are held by institutional investors. 0.6% of Ormat Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Advantage Energy has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	4	3	1	2.63
Ormat Technologies	0	4	8	0	2.67

Ormat Technologies has a consensus price target of $128.64, suggesting a potential upside of 12.68%. Given Ormat Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Ormat Technologies is more favorable than Advantage Energy.

Earnings and Valuation

This table compares Advantage Energy and Ormat Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$500.25 million	2.50	$37.97 million	$0.22	33.82
Ormat Technologies	$989.54 million	7.09	$123.90 million	$2.01	56.80

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

Summary

Ormat Technologies beats Advantage Energy on 13 of the 15 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

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.