Analyzing Methanex (NASDAQ:MEOH) & Verde Clean Fuels (NASDAQ:VGAS)

Verde Clean Fuels (NASDAQ:VGAS) and Methanex (NASDAQ:MEOH) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Verde Clean Fuels and Methanex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verde Clean Fuels	0	0	0	0	N/A
Methanex	0	3	4	0	2.57

Methanex has a consensus price target of $54.88, suggesting a potential upside of 11.72%. Given Methanex’s higher possible upside, analysts plainly believe Methanex is more favorable than Verde Clean Fuels.

Institutional & Insider Ownership

15.6% of Verde Clean Fuels shares are owned by institutional investors. Comparatively, 73.5% of Methanex shares are owned by institutional investors. 1.0% of Methanex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Verde Clean Fuels and Methanex’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verde Clean Fuels	N/A	N/A	-$2.74 million	($0.45)	-10.11
Methanex	$3.72 billion	0.89	$174.14 million	$2.36	20.81

Methanex has higher revenue and earnings than Verde Clean Fuels. Verde Clean Fuels is trading at a lower price-to-earnings ratio than Methanex, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Verde Clean Fuels has a beta of -0.59, indicating that its share price is 159% less volatile than the S&P 500. Comparatively, Methanex has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares Verde Clean Fuels and Methanex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verde Clean Fuels	N/A	-8.59%	-7.17%
Methanex	4.63%	5.38%	1.88%

Summary

Methanex beats Verde Clean Fuels on 12 of the 12 factors compared between the two stocks.

About Verde Clean Fuels

Verde Clean Fuels, Inc., operates as a clean energy technology company in the United States. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, natural gas, and other feedstocks into liquid hydrocarbons that can be used as gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is headquartered in Houston, Texas.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.