New Fortress Energy (NASDAQ:NFE – Get Free Report) and Braskem (NYSE:BAK – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
58.6% of New Fortress Energy shares are held by institutional investors. 29.4% of New Fortress Energy shares are held by company insiders. Comparatively, 0.0% of Braskem shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares New Fortress Energy and Braskem’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Fortress Energy | -72.92% | -43.91% | -5.60% |
| Braskem | -6.95% | N/A | -0.53% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Fortress Energy | $2.36 billion | 0.19 | -$249.04 million | ($3.83) | -0.41 |
| Braskem | $14.36 billion | 0.08 | -$2.10 billion | ($2.28) | -1.28 |
New Fortress Energy has higher earnings, but lower revenue than Braskem. Braskem is trading at a lower price-to-earnings ratio than New Fortress Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings for New Fortress Energy and Braskem, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Fortress Energy | 3 | 3 | 3 | 0 | 2.00 |
| Braskem | 2 | 5 | 0 | 0 | 1.71 |
New Fortress Energy currently has a consensus price target of $7.88, suggesting a potential upside of 401.59%. Braskem has a consensus price target of $4.40, suggesting a potential upside of 50.79%. Given New Fortress Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe New Fortress Energy is more favorable than Braskem.
Volatility and Risk
New Fortress Energy has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Braskem has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.
Summary
New Fortress Energy beats Braskem on 8 of the 14 factors compared between the two stocks.
About New Fortress Energy
New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.
About Braskem
Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.
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