Gevo (NASDAQ:GEVO – Get Free Report) and SUNation Energy (NASDAQ:SUNE – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
35.2% of Gevo shares are held by institutional investors. Comparatively, 4.2% of SUNation Energy shares are held by institutional investors. 4.0% of Gevo shares are held by insiders. Comparatively, 0.3% of SUNation Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Gevo and SUNation Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gevo | -37.33% | -9.49% | -6.82% |
| SUNation Energy | -41.62% | -158.58% | -50.14% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gevo | $16.92 million | 27.35 | -$78.64 million | ($0.20) | -9.55 |
| SUNation Energy | $60.07 million | 0.07 | -$15.85 million | ($109.97) | -0.01 |
SUNation Energy has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than SUNation Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Gevo and SUNation Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gevo | 1 | 2 | 1 | 0 | 2.00 |
| SUNation Energy | 1 | 0 | 0 | 0 | 1.00 |
Gevo presently has a consensus price target of $8.13, suggesting a potential upside of 325.39%. Given Gevo’s stronger consensus rating and higher possible upside, analysts plainly believe Gevo is more favorable than SUNation Energy.
Risk & Volatility
Gevo has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, SUNation Energy has a beta of 3.22, meaning that its stock price is 222% more volatile than the S&P 500.
Summary
Gevo beats SUNation Energy on 10 of the 14 factors compared between the two stocks.
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.
About SUNation Energy
SUNation Energy Inc. is focused on local and regional solar, storage and energy services companies. Its portfolio of brands provides homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage and grid services. SUNation Energy Inc., formerly known as Pineapple Energy, is based in RONKONKOMA, N.Y.
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