Financial Analysis: Kolibri Global Energy (NASDAQ:KGEI) and Gevo (NASDAQ:GEVO)

Kolibri Global Energy (NASDAQ:KGEI) and Gevo (NASDAQ:GEVO) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

Kolibri Global Energy has a beta of -0.63, meaning that its stock price is 163% less volatile than the S&P 500. Comparatively, Gevo has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Kolibri Global Energy and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kolibri Global Energy	22.67%	8.42%	6.04%
Gevo	-19.38%	-5.06%	-3.41%

Insider & Institutional Ownership

27.3% of Kolibri Global Energy shares are held by institutional investors. Comparatively, 35.2% of Gevo shares are held by institutional investors. 7.1% of Gevo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Kolibri Global Energy and Gevo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kolibri Global Energy	0	2	0	0	2.00
Gevo	2	1	2	0	2.00

Gevo has a consensus target price of $2.75, suggesting a potential upside of 96.43%. Given Gevo’s higher possible upside, analysts plainly believe Gevo is more favorable than Kolibri Global Energy.

Earnings and Valuation

This table compares Kolibri Global Energy and Gevo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kolibri Global Energy	$75.74 million	2.51	$15.48 million	$0.38	14.11
Gevo	$174.42 million	1.95	-$33.84 million	($0.13)	-10.77

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

Summary

Kolibri Global Energy beats Gevo on 7 of the 13 factors compared between the two stocks.

About Kolibri Global Energy

Kolibri Global Energy Inc. engages in the finding and exploiting oil, gas, and clean and sustainable energy in the United States. It sells crude oil, natural gas, and natural gas liquids. The company was formerly known as BNK Petroleum Inc. and changed its name to Kolibri Global Energy Inc. in November 2020. Kolibri Global Energy Inc. was incorporated in 2008 and is headquartered in Thousand Oaks, California.

About Gevo

Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.