Gevo (NASDAQ:GEVO – Get Free Report) and Clearway Energy (NYSE:CWEN – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Gevo and Clearway Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gevo | $160.58 million | 2.55 | -$33.84 million | ($0.13) | -12.92 |
| Clearway Energy | $1.43 billion | 5.23 | $169.00 million | $0.04 | 909.68 |
Profitability
This table compares Gevo and Clearway Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gevo | -19.38% | -5.06% | -3.41% |
| Clearway Energy | 0.13% | 0.04% | 0.01% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Gevo and Clearway Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gevo | 2 | 1 | 2 | 0 | 2.00 |
| Clearway Energy | 0 | 3 | 5 | 1 | 2.78 |
Gevo currently has a consensus target price of $6.58, indicating a potential upside of 291.87%. Clearway Energy has a consensus target price of $40.57, indicating a potential upside of 11.50%. Given Gevo’s higher probable upside, equities research analysts clearly believe Gevo is more favorable than Clearway Energy.
Insider and Institutional Ownership
35.2% of Gevo shares are held by institutional investors. Comparatively, 84.5% of Clearway Energy shares are held by institutional investors. 7.1% of Gevo shares are held by insiders. Comparatively, 0.5% of Clearway Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Gevo has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Clearway Energy has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Summary
Clearway Energy beats Gevo on 12 of the 15 factors compared between the two stocks.
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.
About Clearway Energy
Clearway Energy, Inc. operates in the renewable energy business in the United States. The company operates through Conventional and Renewables segments. It has approximately 6,000 net MW of installed wind, solar, and energy generation projects; and approximately 2,500 net MW of natural gas-fired generation facilities. The company was formerly known as NRG Yield, Inc. and changed its name to Clearway Energy, Inc. in August 2018. Clearway Energy, Inc. was incorporated in 2012 and is based in Princeton, New Jersey. Clearway Energy, Inc. is a subsidiary of Clearway Energy Group LLC.
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