Back to top

Image: Bigstock

DINO or ORA: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Alternative Energy - Other stocks have likely encountered both HF Sinclair (DINO - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, HF Sinclair is sporting a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). This means that DINO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

DINO currently has a forward P/E ratio of 5.50, while ORA has a forward P/E of 32.64. We also note that DINO has a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ORA currently has a PEG ratio of 1.41.

Another notable valuation metric for DINO is its P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ORA has a P/B of 1.73.

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

DINO has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that DINO is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

HF Sinclair Corporation (DINO) - free report >>

Published in