Advantage Energy (OTCMKTS:AAVVF – Get Free Report) and Ormat Technologies (NYSE:ORA – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
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% |
Institutional and Insider 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 insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings 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 | 6.85 | $123.90 million | $2.01 | 54.90 |
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.
Risk & Volatility
Advantage Energy has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations 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 target price of $128.64, suggesting a potential upside of 16.56%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Ormat Technologies is more favorable than Advantage Energy.
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.
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