Gevo (NASDAQ: GEVO) and Ceres (NASDAQ:CERE) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

13.1% of Gevo shares are owned by institutional investors. 0.1% of Gevo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Gevo -108.84% -43.79% -28.59%
Ceres -106.36% -319.82% -78.47%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gevo and Ceres, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gevo 0 0 2 0 3.00
Ceres 0 0 0 0 N/A

Gevo presently has a consensus price target of $12.00, suggesting a potential upside of 1,933.90%. Given Gevo’s higher probable upside, research analysts plainly believe Gevo is more favorable than Ceres.

Valuation & Earnings

This table compares Gevo and Ceres’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gevo $25.94 million 0.37 -$19.18 million ($3.50) -0.17
Ceres N/A N/A N/A ($1.82) -0.22

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

Volatility & Risk

Gevo has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Ceres has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Summary

Gevo beats Ceres on 8 of the 10 factors compared between the two stocks.

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.

Ceres Company Profile

Ceres, Inc. is an agricultural biotechnology company that develops and markets seeds and traits to produce crops for feed, forages, sugar and other markets. The Company uses a combination of plant breeding, biotechnology and bioinformatics to develop seed products and biotechnology traits. Its Forage sorghum seeds are used for growing feed for livestock, including dairy and beef cattle. Its technology platforms have application across various end markets, including food, feed, fiber and fuel. It has developed bioinformatics software, Persephone, to deal with the data generated in plant genomics. Its Persephone enables storage and access to datasets, as well as data visualizations to view genetic data from public sources and databases. It markets its seed products under the name Blade. Its customers include dairies and livestock producers, agri-industrial facilities, individual growers and grower cooperatives. It deploys a range of research and development methods and tools.

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