(Alternative Energy Stocks)
by Debra Fiakas CFA
In the article “Is Ormat Technologies Misunderstood?”, I outlined a few performance measurement issues, but left out of the story Ormat’s position in the relative position in the geothermal industry. Naturally I received comments from readers about why I made no comparison of Ormat to Calpine Corporation, the largest U.S. generator of electrical power using geothermal sources.
On a go-forward basis Calpine shares are valued about the same as Ormat Technologies, Inc., at least on the basis of projected earnings per share. However, besides simply being a larger company with greater longevity in the power generation market, Calpine offers a significantly higher dividend yield and benefits from a sturdier balance sheet. There are other differences.
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