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

Core Viewpoint - Clearway Energy (CWEN) is currently positioned as a more attractive investment option compared to Ormat Technologies (ORA) for value investors based on various financial metrics and earnings outlook improvements [1][3][7]. Valuation Metrics - CWEN has a forward P/E ratio of 29.18, while ORA has a forward P/E of 41.29, indicating that CWEN is relatively undervalued [5]. - The PEG ratio for CWEN is 0.76, suggesting a favorable valuation in relation to its expected earnings growth, whereas ORA has a PEG ratio of 4.13, indicating a higher valuation relative to growth expectations [5]. - CWEN's P/B ratio is 1.2, compared to ORA's P/B of 2.02, further supporting the notion that CWEN is undervalued [6]. Earnings Outlook - CWEN has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to ORA [3][7]. - The Zacks Rank for CWEN is 2 (Buy), while ORA holds a Zacks Rank of 3 (Hold), reflecting a more favorable earnings estimate revision for CWEN [3]. Value Grades - Based on the analysis of various valuation metrics, CWEN holds a Value grade of B, while ORA has a Value grade of C, reinforcing the conclusion that CWEN is the superior option for value investors at this time [6].