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

Zacks Equity Research
·2-min read

Investors with an interest in Alternative Energy - Other stocks have likely encountered both TotalEnergies SE Sponsored ADR (TTE) and Ormat Technologies (ORA). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, TotalEnergies SE Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Ormat Technologies has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTE has an improving earnings outlook. But this is only part of the picture 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.

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The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TTE currently has a forward P/E ratio of 7.29, while ORA has a forward P/E of 55.79. We also note that TTE has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ORA currently has a PEG ratio of 4.66.

Another notable valuation metric for TTE is its P/B ratio of 1.08. 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 2.14.

Based on these metrics and many more, TTE holds a Value grade of A, while ORA has a Value grade of C.

TTE stands above ORA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TTE is the superior value option right now.


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TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
 
Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
 
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