Analyzing GE Vernova (NYSE:GEV) and Meren Energy (OTCMKTS:AOIFF)

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

Profitability

This table compares GE Vernova and Meren Energy’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%
Meren Energy	N/A	3.52%	1.68%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GE Vernova and Meren Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	0	8	19	4	2.87
Meren Energy	0	0	0	1	4.00

GE Vernova presently has a consensus price target of $598.50, indicating a potential downside of 4.31%. Given GE Vernova’s higher possible upside, analysts plainly believe GE Vernova is more favorable than Meren Energy.

Earnings and Valuation

This table compares GE Vernova and Meren Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Vernova	$34.94 billion	4.87	$1.55 billion	$4.15	150.72
Meren Energy	N/A	N/A	-$279.10 million	($0.52)	-2.55

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

Dividends

GE Vernova pays an annual dividend of $1.00 per share and has a dividend yield of 0.2%. Meren Energy pays an annual dividend of $0.15 per share and has a dividend yield of 11.3%. GE Vernova pays out 24.1% of its earnings in the form of a dividend. Meren Energy pays out -28.8% 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. Meren Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

GE Vernova has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Meren Energy has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Summary

GE Vernova beats Meren Energy on 11 of the 14 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 Meren Energy

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.