Financial Analysis: Gevo (NASDAQ:GEVO) vs. Keyuan Petrochemicals (OTCMKTS:KEYP)

Keyuan Petrochemicals (OTCMKTS:KEYP) and Gevo (NASDAQ:GEVO) are both small-cap manufacturing companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Earnings & Valuation

This table compares Keyuan Petrochemicals and Gevo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keyuan Petrochemicals	N/A	N/A	N/A	N/A	N/A
Gevo	$16.92 million	16.22	-$66.21 million	($0.35)	-3.27

Keyuan Petrochemicals has higher earnings, but lower revenue than Gevo.

Analyst Ratings

This is a summary of recent ratings for Keyuan Petrochemicals and Gevo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keyuan Petrochemicals	0	0	0	0	0.00
Gevo	0	1	1	0	2.50

Gevo has a consensus target price of $7.58, indicating a potential upside of 561.57%. Given Gevo’s stronger consensus rating and higher probable upside, analysts clearly believe Gevo is more favorable than Keyuan Petrochemicals.

Profitability

This table compares Keyuan Petrochemicals and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keyuan Petrochemicals	N/A	N/A	N/A
Gevo	-510.04%	-14.95%	-12.69%

Institutional & Insider Ownership

35.2% of Gevo shares are owned by institutional investors. 4.0% of Gevo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Gevo beats Keyuan Petrochemicals on 6 of the 9 factors compared between the two stocks.

About Keyuan Petrochemicals

Keyuan Petrochemicals, Inc., through its subsidiaries, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan Synthetic Rubbers, Guangxi Keyuan and Zhongkexuneng, is engaged in the manufacture and sale of petrochemical products and rubber in the People’s Republic of China. The Company’s segments include the manufacture and sale of petrochemical products (petrochemical segment) and the manufacture and sale of rubber products (rubber segment). The Petrochemicals Segment includes the manufacturing and sales of mixed light aromatics, mixed heavy aromatics, fine propylene, propane, butane, liquefied petroleum gas (LPG), methyltert-butylether and styrene. The Rubber Segment includes the manufacturing and sales of various rubber products. It manufactures and supplies various petrochemical and rubber products, including petrochemical products, such as Benzene Toluene-Xylene Aromatics (BTX Aromatics), propylene, styrene, LPG, Methyl Tertiary Butyl Ether (MTBE) and rubber products.

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.