Contrasting Gevo (GEVO) and The Competition

Gevo (NASDAQ: GEVO) is one of 25 publicly-traded companies in the “Industrial organic chemicals” industry, but how does it weigh in compared to its rivals? We will compare Gevo to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Profitability

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This table compares Gevo and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gevo -89.44% -38.20% -27.28%
Gevo Competitors -17.73% -14.01% -6.55%

Earnings and Valuation

This table compares Gevo and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gevo $27.54 million -$24.63 million -0.21
Gevo Competitors $3.36 billion $346.16 million 4.23

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

Institutional & Insider Ownership

4.0% of Gevo shares are owned by institutional investors. Comparatively, 52.6% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 0.1% of Gevo shares are owned by insiders. Comparatively, 14.0% of shares of all “Industrial organic chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gevo and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gevo 0 1 1 0 2.50
Gevo Competitors 121 479 744 26 2.49

Gevo currently has a consensus price target of $12.00, indicating a potential upside of 3,398.54%. As a group, “Industrial organic chemicals” companies have a potential upside of 8.87%. Given Gevo’s stronger consensus rating and higher probable upside, analysts plainly believe Gevo is more favorable than its rivals.

Risk and Volatility

Gevo has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, Gevo’s rivals have a beta of 0.49, indicating that their average share price is 51% less volatile than the S&P 500.

Summary

Gevo rivals beat Gevo on 10 of the 13 factors compared.

About Gevo

Gevo, Inc., a renewable chemicals and biofuels company, focuses on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks in the United States. It operates through two segments, Gevo, Inc. and Gevo Development/Agri-Energy. The company engages in the research and development, and production of isobutanol; development of its proprietary biocatalysts; production and sale of biojet fuel; and retrofit process of chemicals and biofuels. It is also involved in the production of ethanol, isobutanol, and related products. In addition, the company produces and separates its renewable isobutanol through the Gevo Integrated Fermentation Technology platform. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was founded in 2005 and is headquartered in Englewood, Colorado.

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