Gevo (NASDAQ: GEVO) and Green Plains Partners (NASDAQ:GPP) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
This table compares Gevo and Green Plains Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Plains Partners||55.59%||-129.01%||67.20%|
Volatility and Risk
Gevo has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Green Plains Partners has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Institutional and Insider Ownership
15.9% of Gevo shares are held by institutional investors. Comparatively, 54.6% of Green Plains Partners shares are held by institutional investors. 0.1% of Gevo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Gevo and Green Plains Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gevo||$26.51 million||0.33||-$18.50 million||N/A||N/A|
|Green Plains Partners||$107.21 million||5.56||$68.92 million||$1.83||10.25|
Green Plains Partners has higher revenue and earnings than Gevo.
This is a breakdown of current ratings and target prices for Gevo and Green Plains Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Plains Partners||0||0||5||0||3.00|
Green Plains Partners has a consensus target price of $21.38, indicating a potential upside of 14.00%. Given Green Plains Partners’ higher possible upside, analysts clearly believe Green Plains Partners is more favorable than Gevo.
Green Plains Partners pays an annual dividend of $1.76 per share and has a dividend yield of 9.4%. Gevo does not pay a dividend. Green Plains Partners pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Green Plains Partners beats Gevo on 9 of the 13 factors compared between the two stocks.
Gevo Company Profile
Gevo, Inc. (Gevo) is a renewable chemicals and next generation biofuels company. The Company has developed a technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstock. It has two operating segments: the Gevo, Inc. segment and the Gevo Development/Agri-Energy segment. Its Gevo, Inc. segment is responsible for research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Its Gevo Development/Agri-Energy segment is responsible for the operation of its Agri-Energy Facility and the production of ethanol, isobutanol and related products.
Green Plains Partners Company Profile
Green Plains Partners LP provides fuel storage and transportation services. The Company owns, operates, develops and acquires ethanol and fuel storage facilities, terminals, transportation assets, and other related assets and businesses. The Company’s parent company is Green Plains Inc. (Green Plains). The Company was formed by Green Plains, a vertically integrated ethanol producer, to support its marketing and distribution activities as its primary downstream logistics provider. The Company’s ethanol storage assets are the principal method of storing ethanol produced at its parent’s ethanol production plants. Ethanol can be distributed from its storage facilities to bulk terminals through truck, railcar or barge. As of December 31, 2016, the Company owned or leased 39 ethanol storage facilities and approximately 56 acres of land. As of December 31, 2016, its storage tanks were located at or near its parent’s 17 ethanol production plants in Indiana and Illinois, among others
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