Financial Analysis: Clean Energy Fuels (CLNE) & Hess (HES)

Hess (NYSE: HES) and Clean Energy Fuels (NASDAQ:CLNE) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

88.6% of Hess shares are owned by institutional investors. Comparatively, 35.3% of Clean Energy Fuels shares are owned by institutional investors. 11.8% of Hess shares are owned by insiders. Comparatively, 26.7% of Clean Energy Fuels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Hess and Clean Energy Fuels, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hess 2 9 7 0 2.28
Clean Energy Fuels 0 0 0 0 N/A

Hess presently has a consensus price target of $52.05, suggesting a potential upside of 15.08%. Given Hess’ higher possible upside, analysts clearly believe Hess is more favorable than Clean Energy Fuels.

Valuation & Earnings

This table compares Hess and Clean Energy Fuels’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hess $5.41 billion 2.66 -$4.07 billion ($13.12) -3.45
Clean Energy Fuels $402.66 million 0.53 -$12.15 million ($0.37) -3.78

Clean Energy Fuels has lower revenue, but higher earnings than Hess. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Hess, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Hess has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Dividends

Hess pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Clean Energy Fuels does not pay a dividend. Hess pays out -7.6% of its earnings in the form of a dividend.

Profitability

This table compares Hess and Clean Energy Fuels’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hess -74.55% -9.82% -5.31%
Clean Energy Fuels -15.47% -10.52% -6.31%

Summary

Hess beats Clean Energy Fuels on 9 of the 13 factors compared between the two stocks.

Hess Company Profile

Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.

Clean Energy Fuels Company Profile

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

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