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DINO vs. ORA: Which Stock Is the Better Value Option?

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Investors interested in Alternative Energy - Other stocks are likely familiar with HF Sinclair (DINO - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

HF Sinclair has a Zacks Rank of #1 (Strong Buy), while Ormat Technologies has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that DINO likely has seen a stronger improvement to its earnings outlook than ORA has recently. But this is only part of the picture for value investors.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DINO currently has a forward P/E ratio of 4, while ORA has a forward P/E of 66.95. We also note that DINO has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ORA currently has a PEG ratio of 6.09.

Another notable valuation metric for DINO is its P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ORA has a P/B of 2.44.

Based on these metrics and many more, DINO holds a Value grade of A, while ORA has a Value grade of C.

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


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

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