Expand Energy (NASDAQ:EXE – Get Free Report) and Gevo (NASDAQ:GEVO – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Profitability
This table compares Expand Energy and Gevo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Expand Energy | 22.53% | 10.26% | 6.73% |
| Gevo | -19.38% | -5.06% | -3.41% |
Risk & Volatility
Expand Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Expand Energy | $12.12 billion | 1.91 | $1.82 billion | $13.41 | 7.21 |
| Gevo | $160.58 million | 2.54 | -$33.84 million | ($0.13) | -12.88 |
Expand Energy has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than Expand Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Expand Energy and Gevo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Expand Energy | 0 | 4 | 13 | 2 | 2.89 |
| Gevo | 2 | 1 | 2 | 0 | 2.00 |
Expand Energy presently has a consensus target price of $132.09, suggesting a potential upside of 36.65%. Gevo has a consensus target price of $6.58, suggesting a potential upside of 293.03%. Given Gevo’s higher probable upside, analysts clearly believe Gevo is more favorable than Expand Energy.
Insider & Institutional Ownership
97.9% of Expand Energy shares are owned by institutional investors. Comparatively, 35.2% of Gevo shares are owned by institutional investors. 0.2% of Expand Energy shares are owned by company insiders. Comparatively, 7.1% of Gevo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Expand Energy beats Gevo on 11 of the 15 factors compared between the two stocks.
About Expand Energy
Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.
About Gevo
Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.
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