Critical Survey: Ocean Thermal Energy (CPWR) and Its Competitors

Valuation and Earnings

This table compares Ocean Thermal Energy and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ocean Thermal Energy	N/A	N/A	0.02
Ocean Thermal Energy Competitors	$6.38 billion	$832.74 million	19.67

Ocean Thermal Energy’s peers have higher revenue and earnings than Ocean Thermal Energy. Ocean Thermal Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

84.7% of Ocean Thermal Energy shares are held by institutional investors. Comparatively, 36.0% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 3.3% of Ocean Thermal Energy shares are held by insiders. Comparatively, 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Ocean Thermal Energy pays an annual dividend of $0.50 per share and has a dividend yield of 9,803.9%. Ocean Thermal Energy pays out 208.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 275.7% of their earnings in the form of a dividend. Ocean Thermal Energy is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Ocean Thermal Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocean Thermal Energy	N/A	N/A	N/A
Ocean Thermal Energy Competitors	-42.52%	13.39%	0.72%

Summary

Ocean Thermal Energy peers beat Ocean Thermal Energy on 5 of the 9 factors compared.

Ocean Thermal Energy Company Profile

Ocean Thermal Energy Corporation, together with its subsidiaries, engages in the development of projects for renewable power generation, desalinated water production, and air conditioning worldwide. It is involved in the design and development of ocean thermal energy conversion, and seawater and lake water air conditioning plants for commercial properties, utilities, and municipalities. The company produces electricity through ocean thermal electrical conversion plants and provides air conditioning for large commercial buildings or other facilities through seawater air conditioning and lake source cooling plants. It also produces fresh and desalinated water for human consumption, agricultural, mariculture, and fish farming/aquaculture uses. In addition, the company is involved in the development and commercialization of EcoVillages, a socially, economically, and ecologically sustainable communities. It has strategic relationships with DCO Energy, LLC. The company was founded in 1998 and is headquartered in Philadelphia, Pennsylvania.