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

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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 offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

HF Sinclair and Ormat Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 5.56, while ORA has a forward P/E of 33.44. We also note that DINO has a PEG ratio of 0.62. 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 1.44.

Another notable valuation metric for DINO is its P/B ratio of 0.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ORA has a P/B of 1.60.

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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