Critical Contrast: GE Vernova (NYSE:GEV) and Gevo (NASDAQ:GEVO)

GE Vernova (NYSE:GEV) and Gevo (NASDAQ:GEVO) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Valuation & Earnings

This table compares GE Vernova and Gevo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Vernova	$34.94 billion	4.72	$1.55 billion	$4.15	146.08
Gevo	$16.92 million	31.44	-$78.64 million	($0.26)	-8.46

GE Vernova has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than GE Vernova, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GE Vernova and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Vernova	3.16%	13.23%	2.60%
Gevo	-72.76%	-12.04%	-9.09%

Insider & Institutional Ownership

35.2% of Gevo shares are held by institutional investors. 0.2% of GE Vernova shares are held by company insiders. Comparatively, 4.0% of Gevo shares are held by company 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.

Volatility & Risk

GE Vernova has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Gevo has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for GE Vernova and Gevo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	0	8	19	4	2.87
Gevo	1	2	1	0	2.00

GE Vernova currently has a consensus price target of $598.50, indicating a potential downside of 1.28%. Gevo has a consensus price target of $8.13, indicating a potential upside of 269.32%. Given Gevo’s higher probable upside, analysts clearly believe Gevo is more favorable than GE Vernova.

Summary

GE Vernova beats Gevo on 10 of the 15 factors compared between the two stocks.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

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.