Investors interested in Alternative Energy - Other stocks are likely familiar with Kolibri Global Energy Inc. (KGEI) and Ormat Technologies (ORA). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Kolibri Global Energy Inc. and Ormat Technologies are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that KGEI likely has seen a stronger improvement to its earnings outlook than ORA has recently. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

KGEI currently has a forward P/E ratio of 11.90, while ORA has a forward P/E of 31.05. We also note that KGEI has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ORA currently has a PEG ratio of 3.11.

Another notable valuation metric for KGEI is its P/B ratio of 1.36. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ORA has a P/B of 1.60.

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

KGEI has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that KGEI is the superior option right now.

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