Ormat Technologies (NYSE:ORA – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Institutional & Insider Ownership
95.5% of Ormat Technologies shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 1.0% of Ormat Technologies shares are owned by company insiders. Comparatively, 0.2% of Talen Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Ormat Technologies and Talen Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ormat Technologies | 14.89% | 5.40% | 2.50% |
| Talen Energy | 41.79% | 2.27% | 0.82% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ormat Technologies | 0 | 3 | 3 | 0 | 2.50 |
| Talen Energy | 0 | 0 | 9 | 0 | 3.00 |
Ormat Technologies currently has a consensus target price of $81.67, suggesting a potential upside of 1.75%. Talen Energy has a consensus target price of $205.33, suggesting a potential upside of 14.60%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talen Energy is more favorable than Ormat Technologies.
Valuation & Earnings
This table compares Ormat Technologies and Talen Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ormat Technologies | $886.53 million | 5.47 | $124.40 million | $2.22 | 36.15 |
| Talen Energy | $2.55 billion | 3.58 | $613.00 million | N/A | N/A |
Talen Energy has higher revenue and earnings than Ormat Technologies.
Summary
Talen Energy beats Ormat Technologies on 6 of the 11 factors compared between the two stocks.
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.
About Talen Energy
Talen Energy Corporation is a U.S.-based energy and power generation company. The Company owns or controls approximately 16,000 megawatts of capacity in wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. The Company generates and sells electricity, capacity and related products from power plants that use fuel sources, such as nuclear, natural gas and coal. The Company’s Susquehanna nuclear power plant has approximately two boiling water reactors with a combined capacity of over 2,600 megawatts. Its fossil fuel plants are located in Athens, Barney Davis, Bayonne, Brandon Shores, Brunner Island, Camden, Colstrip and Dartmouth, among others. It has an art energy trading center located in Allentown, Pennsylvania (PA), where it manages asset load obligations, fuel supply, capacity and related products, and all supporting physical or financial transactions for its electric generation portfolio.
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