Critical Analysis: Verde Clean Fuels (VGAS) & Its Peers

Verde Clean Fuels (NASDAQ:VGAS) is one of 44 publicly-traded companies in the “Industrial organic chemicals” industry, but how does it contrast to its competitors? We will compare Verde Clean Fuels to related businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

15.6% of Verde Clean Fuels shares are held by institutional investors. Comparatively, 48.2% of shares of all “Industrial organic chemicals” companies are held by institutional investors. 12.4% of shares of all “Industrial organic chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Verde Clean Fuels has a beta of -0.48, suggesting that its share price is 148% less volatile than the S&P 500. Comparatively, Verde Clean Fuels’ competitors have a beta of -92.43, suggesting that their average share price is 9,343% less volatile than the S&P 500.

Earnings & Valuation

This table compares Verde Clean Fuels and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Verde Clean Fuels	N/A	-$2.74 million	-10.98
Verde Clean Fuels Competitors	$4.07 billion	$14.67 million	5.53

Verde Clean Fuels’ competitors have higher revenue and earnings than Verde Clean Fuels. Verde Clean Fuels is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Verde Clean Fuels and its competitors’ 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%
Verde Clean Fuels Competitors	5.52%	-361.10%	-1.56%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Verde Clean Fuels and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verde Clean Fuels	0	0	0	0	N/A
Verde Clean Fuels Competitors	410	955	1429	61	2.40

As a group, “Industrial organic chemicals” companies have a potential upside of 15.76%. Given Verde Clean Fuels’ competitors higher probable upside, analysts plainly believe Verde Clean Fuels has less favorable growth aspects than its competitors.

Summary

Verde Clean Fuels competitors beat Verde Clean Fuels on 8 of the 10 factors compared.

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.