Ormat Technologies (NASDAQ: SKYS) and Sky Solar (NASDAQ:SKYS) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

Ormat Technologies pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Sky Solar does not pay a dividend. Ormat Technologies pays out 13.4% of its earnings in the form of a dividend.

Volatility & Risk

Ormat Technologies has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Sky Solar has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ormat Technologies and Sky Solar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ormat Technologies $692.81 million 3.76 $132.41 million $2.99 17.20
Sky Solar $56.73 million 5.57 -$33.17 million ($0.80) -1.01

Ormat Technologies has higher revenue and earnings than Sky Solar. Sky Solar is trading at a lower price-to-earnings ratio than Ormat Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ormat Technologies and Sky Solar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ormat Technologies 0 3 3 0 2.50
Sky Solar 0 0 2 0 3.00

Ormat Technologies presently has a consensus price target of $67.20, suggesting a potential upside of 30.64%. Sky Solar has a consensus price target of $5.00, suggesting a potential upside of 517.28%. Given Sky Solar’s stronger consensus rating and higher possible upside, analysts plainly believe Sky Solar is more favorable than Ormat Technologies.

Profitability

This table compares Ormat Technologies and Sky Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ormat Technologies 18.88% 9.60% 4.73%
Sky Solar N/A N/A N/A

Institutional & Insider Ownership

72.9% of Ormat Technologies shares are owned by institutional investors. Comparatively, 0.2% of Sky Solar shares are owned by institutional investors. 0.5% of Ormat Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ormat Technologies beats Sky Solar on 11 of the 15 factors compared between the two stocks.

About Ormat Technologies

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business worldwide. The company operates through Electricity and Product segments. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells electricity. This segment also offers energy storage, demand response, and energy management related services. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation, such as fossil fuel powered turbo-generators and heavy duty direct-current generators. This segment also provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; 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. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.

About Sky Solar

Sky Solar Holdings, Ltd., an investment holding company, operates as an independent power producer worldwide. The company develops, owns, and operates solar parks primarily in the downstream solar market. It also sells solar energy systems, including pipeline; and engineering, construction, and procurement services, as well as engages in building and transferring solar parks. As of December 31, 2017, the company developed 318 solar parks with an aggregate capacity of 377.2 megawatts (MW) in Japan, Bulgaria, the Czech Republic, Spain, Canada, the United States, and Uruguay; and owned and operated 196.7 MW of solar parks, including 96.3 MW in Japan, 5.6 MW in the Czech Republic, 0.2 MW in Canada, 0.9 MW in Spain, 22.1 MW in the United States, and 71.6 MW in Uruguay. It also had approximately 400 MW of solar projects in various stages of development in countries, such as Chile, Japan, Canada, and the United States comprising 6.6 MW under construction, 180.1 MW of shovel-ready projects, and approximately 250 MW of solar parks in pipeline. The company has strategic partnership agreement with Hudson Clean Energy Partners for investing in renewable power and clean energy. Sky Solar Holdings, Ltd. was founded in 2009 and is headquartered in Admiralty, Hong Kong.

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