Gevo (NASDAQ:GEVO – Get Free Report) and Enterprise Products Partners (NYSE:EPD – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Risk and Volatility
Gevo has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
Earnings & Valuation
This table compares Gevo and Enterprise Products Partners”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gevo | $160.58 million | 1.92 | -$33.84 million | ($0.89) | -1.40 |
| Enterprise Products Partners | $52.60 billion | 1.57 | $5.81 billion | $3.02 | 12.67 |
Enterprise Products Partners has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
35.2% of Gevo shares are held by institutional investors. Comparatively, 26.1% of Enterprise Products Partners shares are held by institutional investors. 7.1% of Gevo shares are held by company insiders. Comparatively, 32.6% of Enterprise Products Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Gevo and Enterprise Products Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gevo | -119.93% | -6.50% | -4.22% |
| Enterprise Products Partners | 10.24% | 21.50% | 8.23% |
Analyst Recommendations
This is a summary of current recommendations for Gevo and Enterprise Products Partners, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gevo | 1 | 3 | 2 | 0 | 2.17 |
| Enterprise Products Partners | 1 | 10 | 7 | 0 | 2.33 |
Gevo currently has a consensus price target of $2.55, indicating a potential upside of 104.00%. Enterprise Products Partners has a consensus price target of $40.18, indicating a potential upside of 5.04%. Given Gevo’s higher possible upside, research analysts clearly believe Gevo is more favorable than Enterprise Products Partners.
Summary
Enterprise Products Partners beats Gevo 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 Enterprise Products Partners
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of approximately 250 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation facilities, including propylene fractionation units and propane dehydrogenation facilities, and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement, isobutane dehydrogenation, and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals; and provides refined products marketing and marine transportation services. Enterprise Products Partners L.P. was founded in 1968 and is headquartered in Houston, Texas.
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