Critical Review: NextDecade (NEXT) vs. Its Competitors

NextDecade (NASDAQ:NEXT) is one of 1,052 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare NextDecade to similar businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Institutional & Insider Ownership

66.7% of NextDecade shares are held by institutional investors. Comparatively, 30.6% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 2.6% of NextDecade shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

NextDecade has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, NextDecade’s peers have a beta of -3.72, indicating that their average share price is 472% less volatile than the S&P 500.

Earnings & Valuation

This table compares NextDecade and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NextDecade	N/A	-$306.43 million	-5.29
NextDecade Competitors	$10.68 billion	$5.51 billion	1.13

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

Profitability

This table compares NextDecade and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextDecade	N/A	-27.94%	-5.19%
NextDecade Competitors	-491.62%	4.79%	5.51%

Analyst Ratings

This is a summary of current ratings and target prices for NextDecade and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextDecade	1	4	1	1	2.29
NextDecade Competitors	5789	26356	39874	2258	2.52

NextDecade currently has a consensus price target of $8.10, indicating a potential upside of 12.66%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 34.12%. Given NextDecade’s peers stronger consensus rating and higher probable upside, analysts plainly believe NextDecade has less favorable growth aspects than its peers.

Summary

NextDecade peers beat NextDecade on 9 of the 13 factors compared.

NextDecade Company Profile

NextDecade Corp. is a development company.