Gevo (NASDAQ:GEVO – Get Free Report) and Permian Resources (NYSE:PR – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership
35.2% of Gevo shares are held by institutional investors. Comparatively, 91.8% of Permian Resources shares are held by institutional investors. 7.1% of Gevo shares are held by insiders. Comparatively, 5.0% of Permian Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Gevo and Permian Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gevo | -119.93% | -6.50% | -4.22% |
| Permian Resources | 21.52% | 13.47% | 8.66% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gevo | 1 | 3 | 2 | 0 | 2.17 |
| Permian Resources | 0 | 3 | 14 | 5 | 3.09 |
Gevo currently has a consensus target price of $2.55, indicating a potential upside of 82.14%. Permian Resources has a consensus target price of $24.83, indicating a potential upside of 16.34%. Given Gevo’s higher possible upside, research analysts plainly believe Gevo is more favorable than Permian Resources.
Volatility & Risk
Gevo has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gevo and Permian Resources”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gevo | $160.58 million | 2.16 | -$33.84 million | ($0.89) | -1.57 |
| Permian Resources | $5.07 billion | 3.53 | $935.17 million | $1.51 | 14.14 |
Permian Resources has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than Permian Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Permian Resources 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 Permian Resources
Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.
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