Green Plains Partners (NASDAQ: GPP) and Gevo (NASDAQ:GEVO) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Valuation and Earnings
This table compares Green Plains Partners and Gevo’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Green Plains Partners||$106.79 million||5.42||$68.65 million||$1.80||10.11|
|Gevo||$25.94 million||0.36||-$19.18 million||N/A||N/A|
Green Plains Partners has higher revenue and earnings than Gevo.
This is a summary of current recommendations for Green Plains Partners and Gevo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Plains Partners||1||0||4||0||2.60|
Green Plains Partners currently has a consensus target price of $21.70, suggesting a potential upside of 19.23%. Gevo has a consensus target price of $12.00, suggesting a potential upside of 1,990.59%. Given Gevo’s stronger consensus rating and higher possible upside, analysts clearly believe Gevo is more favorable than Green Plains Partners.
Volatility and Risk
Green Plains Partners has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Gevo has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500.
Institutional and Insider Ownership
55.4% of Green Plains Partners shares are owned by institutional investors. Comparatively, 14.8% of Gevo shares are owned by institutional investors. 0.3% of Gevo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Green Plains Partners and Gevo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Plains Partners||54.97%||-90.84%||64.05%|
Green Plains Partners pays an annual dividend of $1.80 per share and has a dividend yield of 9.9%. Gevo does not pay a dividend. Green Plains Partners pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Green Plains Partners beats Gevo on 8 of the 14 factors compared between the two stocks.
Green Plains Partners Company Profile
Green Plains Partners LP provides fuel storage and transportation services. The Company owns, operates, develops and acquires ethanol and fuel storage facilities, terminals, transportation assets, and other related assets and businesses. The Company’s parent company is Green Plains Inc. (Green Plains). The Company was formed by Green Plains, a vertically integrated ethanol producer, to support its marketing and distribution activities as its primary downstream logistics provider. The Company’s ethanol storage assets are the principal method of storing ethanol produced at its parent’s ethanol production plants. Ethanol can be distributed from its storage facilities to bulk terminals through truck, railcar or barge. As of December 31, 2016, the Company owned or leased 39 ethanol storage facilities and approximately 56 acres of land. As of December 31, 2016, its storage tanks were located at or near its parent’s 17 ethanol production plants in Indiana and Illinois, among others
Gevo Company Profile
Gevo, Inc. (Gevo) is a renewable chemicals and next generation biofuels company. The Company has developed a technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstock. It has two operating segments: the Gevo, Inc. segment and the Gevo Development/Agri-Energy segment. Its Gevo, Inc. segment is responsible for research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Its Gevo Development/Agri-Energy segment is responsible for the operation of its Agri-Energy Facility and the production of ethanol, isobutanol and related products.
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