Gevo (NASDAQ:GEVO – Get Free Report) and Greenfire Resources (NYSE:GFR – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Profitability
This table compares Gevo and Greenfire Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gevo | -19.38% | -5.06% | -3.41% |
| Greenfire Resources | -7.55% | -4.20% | -3.27% |
Earnings & Valuation
This table compares Gevo and Greenfire Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gevo | $160.58 million | 2.12 | -$33.84 million | ($0.13) | -10.77 |
| Greenfire Resources | $431.77 million | 1.64 | $34.00 million | ($0.09) | -62.67 |
Greenfire Resources has higher revenue and earnings than Gevo. Greenfire Resources is trading at a lower price-to-earnings ratio than Gevo, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
35.2% of Gevo shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 7.1% of Gevo shares are held by insiders. Comparatively, 20.0% of Greenfire Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations for Gevo and Greenfire Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gevo | 2 | 1 | 2 | 0 | 2.00 |
| Greenfire Resources | 1 | 1 | 1 | 0 | 2.00 |
Gevo currently has a consensus target price of $2.75, suggesting a potential upside of 96.43%. Given Gevo’s higher probable upside, analysts plainly believe Gevo is more favorable than Greenfire Resources.
Risk and Volatility
Gevo has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.
Summary
Greenfire Resources beats Gevo on 8 of the 13 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 Greenfire Resources
Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.
Receive News & Ratings for Gevo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gevo and related companies with MarketBeat.com's FREE daily email newsletter.
