Head-To-Head Survey: Pacific Ethanol (PEIX) and The Competition

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

Risk & Volatility

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Pacific Ethanol has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Pacific Ethanol’s competitors have a beta of 0.49, meaning that their average stock price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

79.0% of Pacific Ethanol shares are held by institutional investors. Comparatively, 52.6% of shares of all “Industrial organic chemicals” companies are held by institutional investors. 3.9% of Pacific Ethanol shares are held by insiders. Comparatively, 14.0% of shares of all “Industrial organic chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Pacific Ethanol and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Ethanol -2.14% -8.84% -4.96%
Pacific Ethanol Competitors -17.73% -14.01% -6.55%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pacific Ethanol and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Ethanol 0 0 3 0 3.00
Pacific Ethanol Competitors 121 480 745 26 2.49

Pacific Ethanol currently has a consensus target price of $11.33, indicating a potential upside of 223.81%. As a group, “Industrial organic chemicals” companies have a potential upside of 11.53%. Given Pacific Ethanol’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pacific Ethanol is more favorable than its competitors.

Valuation and Earnings

This table compares Pacific Ethanol and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pacific Ethanol $1.63 billion -$34.96 million -4.12
Pacific Ethanol Competitors $3.36 billion $346.16 million 3.98

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

Summary

Pacific Ethanol beats its competitors on 8 of the 12 factors compared.

Pacific Ethanol Company Profile

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the United States. The company operates in two segments, Production and Marketing. It produces and markets ethanol; specialty alcohols; and co-products, such as wet distillers grains, dry distillers grains with solubles, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil, distillers yeast, and CO2, as well as markets ethanol produced by third parties. The company also offers ethanol transportation, storage, and delivery services through third-party service providers. It sells ethanol to integrated oil companies and gasoline marketers; distillers grains and other feed co-products to dairies and feedlots; and corn oil to poultry and biodiesel customers. The company owns and operates nine ethanol production facilities in the Western states of California, Oregon, and Idaho; and in the Midwestern states of Illinois and Nebraska. Pacific Ethanol, Inc. was founded in 2003 and is headquartered in Sacramento, California.

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