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TTE vs. ORA: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Alternative Energy - Other stocks have likely encountered both TotalEnergies SE Sponsored ADR (TTE - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

TotalEnergies SE Sponsored ADR and Ormat Technologies are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TTE is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TTE currently has a forward P/E ratio of 4.82, while ORA has a forward P/E of 64.95. We also note that TTE has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ORA currently has a PEG ratio of 4.07.

Another notable valuation metric for TTE is its P/B ratio of 1.16. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ORA has a P/B of 2.42.

These are just a few of the metrics contributing to TTE's Value grade of A and ORA's Value grade of D.

TTE sticks out from ORA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TTE is the better option right now.


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Ormat Technologies, Inc. (ORA) - free report >>

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