Gevo (NASDAQ:GEVO) & Brookfield Renewable (NYSE:BEPC) Financial Review

Brookfield Renewable (NYSE:BEPC) and Gevo (NASDAQ:GEVO) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Earnings & Valuation

This table compares Brookfield Renewable and Gevo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$3.73 billion	1.70	-$2.34 billion	($0.89)	-49.23
Gevo	$16.92 million	26.64	-$78.64 million	($0.20)	-9.30

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

Profitability

This table compares Brookfield Renewable and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-62.07%	-21.54%	-5.01%
Gevo	-37.33%	-9.49%	-6.82%

Insider and Institutional Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 35.2% of Gevo shares are owned by institutional investors. 6.8% of Gevo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Brookfield Renewable has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Gevo has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Brookfield Renewable and Gevo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	1	1	3	0	2.40
Gevo	1	2	2	0	2.20

Brookfield Renewable presently has a consensus target price of $40.00, suggesting a potential downside of 8.70%. Gevo has a consensus target price of $6.42, suggesting a potential upside of 244.98%. Given Gevo’s higher probable upside, analysts clearly believe Gevo is more favorable than Brookfield Renewable.

Summary

Gevo beats Brookfield Renewable on 9 of the 14 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

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.