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ORA vs. CVA: Which Stock Should Value Investors Buy Now?
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Investors interested in Alternative Energy - Other stocks are likely familiar with Ormat Technologies (ORA - Free Report) and Covanta . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ormat Technologies is sporting a Zacks Rank of #1 (Strong Buy), while Covanta has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ORA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ORA currently has a forward P/E ratio of 17.07, while CVA has a forward P/E of 388.85. We also note that ORA has a PEG ratio of 1.55. 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. CVA currently has a PEG ratio of 25.92.
Another notable valuation metric for ORA is its P/B ratio of 1.86. 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, CVA has a P/B of 3.42.
Based on these metrics and many more, ORA holds a Value grade of B, while CVA has a Value grade of C.
ORA has seen stronger estimate revision activity and sports more attractive valuation metrics than CVA, so it seems like value investors will conclude that ORA is the superior option right now.
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ORA vs. CVA: Which Stock Should Value Investors Buy Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with Ormat Technologies (ORA - Free Report) and Covanta . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ormat Technologies is sporting a Zacks Rank of #1 (Strong Buy), while Covanta has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ORA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
ORA currently has a forward P/E ratio of 17.07, while CVA has a forward P/E of 388.85. We also note that ORA has a PEG ratio of 1.55. 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. CVA currently has a PEG ratio of 25.92.
Another notable valuation metric for ORA is its P/B ratio of 1.86. 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, CVA has a P/B of 3.42.
Based on these metrics and many more, ORA holds a Value grade of B, while CVA has a Value grade of C.
ORA has seen stronger estimate revision activity and sports more attractive valuation metrics than CVA, so it seems like value investors will conclude that ORA is the superior option right now.