Contrasting Green Plains (GPRE) and Its Competitors

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

Valuation and Earnings

This table compares Green Plains and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Green Plains $3.60 billion $61.06 million -20.84
Green Plains Competitors $3.36 billion $346.16 million 4.12

Green Plains has higher revenue, but lower earnings than its peers. Green Plains 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 Green Plains and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Plains 1.70% -3.33% -1.31%
Green Plains Competitors -17.73% -14.01% -6.55%

Analyst Recommendations

This is a breakdown of recent ratings for Green Plains and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Plains 0 0 5 0 3.00
Green Plains Competitors 121 479 744 26 2.49

Green Plains currently has a consensus target price of $26.20, indicating a potential upside of 46.21%. As a group, “Industrial organic chemicals” companies have a potential upside of 9.48%. Given Green Plains’ stronger consensus rating and higher possible upside, equities analysts plainly believe Green Plains is more favorable than its peers.

Insider and Institutional Ownership

52.6% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 5.9% of Green Plains 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Green Plains has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Green Plains’ peers have a beta of 0.49, indicating that their average share price is 51% less volatile than the S&P 500.

Dividends

Green Plains pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Green Plains pays out -55.8% of its earnings in the form of a dividend. As a group, “Industrial organic chemicals” companies pay a dividend yield of 2.6% and pay out 41.9% of their earnings in the form of a dividend. Green Plains is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Green Plains beats its peers on 10 of the 15 factors compared.

Green Plains Company Profile

Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. The company operates through four segments: Ethanol Production; Agribusiness and Energy Services; Food and Ingredients; and Partnership. The Ethanol Production segment produces and sells ethanol, distiller grains, and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and corn oil, as well as crude oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Food and Ingredients segment purchases and sells feeder cattle to meat processors; and produces and sells white distilled vinegar and various specialty vinegar, such as balsamic, red wine, white wine, cider, and other varietals primarily to the food industry participants, including branded food companies, private label food manufacturers, and companies serving the foodservice channel, as well as for retail and industrial uses. This segment also produces, trades in, and sells corn and soybean oil. The Partnership segment offers fuel storage and transportation services. As of December 31, 2017, this segment owned 39 ethanol storage facilities; 8 fuel terminal facilities; and approximately a fleet of 3,500 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was founded in 2004 and is headquartered in Omaha, Nebraska.

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