FutureFuel (NYSE:FF – Get Free Report) and Excelerate Energy (NYSE:EE – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
44.6% of FutureFuel shares are held by institutional investors. Comparatively, 21.8% of Excelerate Energy shares are held by institutional investors. 42.6% of FutureFuel shares are held by insiders. Comparatively, 2.3% of Excelerate Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for FutureFuel and Excelerate Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FutureFuel | 1 | 0 | 0 | 0 | 1.00 |
| Excelerate Energy | 0 | 5 | 5 | 3 | 2.85 |
Profitability
This table compares FutureFuel and Excelerate Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FutureFuel | -19.94% | -19.75% | -15.47% |
| Excelerate Energy | 3.23% | 2.24% | 1.22% |
Volatility & Risk
FutureFuel has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Excelerate Energy has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
Valuation and Earnings
This table compares FutureFuel and Excelerate Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FutureFuel | $95.74 million | 2.35 | -$49.40 million | ($0.70) | -7.34 |
| Excelerate Energy | $1.23 billion | 3.06 | $39.20 million | $1.45 | 22.85 |
Excelerate Energy has higher revenue and earnings than FutureFuel. FutureFuel is trading at a lower price-to-earnings ratio than Excelerate Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
FutureFuel pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. Excelerate Energy pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. FutureFuel pays out -5.7% of its earnings in the form of a dividend. Excelerate Energy pays out 24.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Excelerate Energy has raised its dividend for 2 consecutive years. Excelerate Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Excelerate Energy beats FutureFuel on 15 of the 18 factors compared between the two stocks.
About FutureFuel
FutureFuel Corp., together with its subsidiaries, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States. The company operates through two segments, Chemicals and Biofuels. The Chemicals segment provides various custom chemicals that are used in the coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents. The Biofuels segment is involved in the production and sale of biodiesel and petrodiesel blends; and markets its biodiesel products directly to customers through trucks, barges, and rail cars. FutureFuel Corp. is headquartered in Saint Louis, Missouri.
About Excelerate Energy
Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.
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