Yahoo Finance CRGY vs. ORA: Which Stock Is the Better Value Option?
Investors with an interest in Alternative Energy - Other stocks have likely encountered both Crescent Energy (CRGY) 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.
Crescent Energy has a Zacks Rank of #1 (Strong Buy), while Ormat Technologies has a Zacks Rank of #4 (Sell) right now. This means that CRGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CRGY currently has a forward P/E ratio of 8.38, while ORA has a forward P/E of 28.56. We also note that CRGY has a PEG ratio of 0.82. 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. ORA currently has a PEG ratio of 1.39.
Another notable valuation metric for CRGY is its P/B ratio of 1.19. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ORA has a P/B of 1.62.
These are just a few of the metrics contributing to CRGY's Value grade of A and ORA's Value grade of C.
CRGY sticks out from ORA in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRGY is the better option right now.
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Crescent Energy Company (CRGY) : Free Stock Analysis Report
Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
