Critical Analysis: Gevo (GEVO) vs. Westlake Chemical Partners (WLKP)
Gevo (NYSE: WLKP) and Westlake Chemical Partners (NYSE:WLKP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Earnings & Valuation
This table compares Gevo and Westlake Chemical Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gevo||$27.54 million||0.54||-$24.63 million||($32.20)||-0.10|
|Westlake Chemical Partners||$1.17 billion||0.73||$48.67 million||$1.72||15.38|
Risk and Volatility
Gevo has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Insider and Institutional Ownership
45.6% of Westlake Chemical Partners shares are held by institutional investors. 0.1% of Gevo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Gevo and Westlake Chemical Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westlake Chemical Partners||4.53%||5.49%||3.59%|
This is a summary of current recommendations and price targets for Gevo and Westlake Chemical Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westlake Chemical Partners||0||4||3||0||2.43|
Gevo presently has a consensus price target of $240.00, indicating a potential upside of 7,376.64%. Westlake Chemical Partners has a consensus price target of $26.30, indicating a potential downside of 0.57%. Given Gevo’s higher possible upside, analysts plainly believe Gevo is more favorable than Westlake Chemical Partners.
Westlake Chemical Partners pays an annual dividend of $1.64 per share and has a dividend yield of 6.2%. Gevo does not pay a dividend. Westlake Chemical Partners pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westlake Chemical Partners has raised its dividend for 3 consecutive years.
Westlake Chemical Partners beats Gevo on 13 of the 17 factors compared between the two stocks.
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.
About Westlake Chemical Partners
Westlake Chemical Partners LP operates, acquires, and develops ethylene production facilities and related assets in the United States. The company operates ethylene production facilities, which primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was founded in 2014 and is headquartered in Houston, Texas.
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