Head to Head Analysis: Uranium Royalty (NASDAQ:UROY) and Gevo (NASDAQ:GEVO)

Uranium Royalty (NASDAQ:UROY) and Gevo (NASDAQ:GEVO) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk & Volatility

Uranium Royalty has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Gevo has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Uranium Royalty and Gevo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uranium Royalty	0	2	3	0	2.60
Gevo	1	3	2	0	2.17

Uranium Royalty presently has a consensus price target of $4.12, suggesting a potential upside of 1.10%. Gevo has a consensus price target of $2.55, suggesting a potential upside of 91.73%. Given Gevo’s higher probable upside, analysts plainly believe Gevo is more favorable than Uranium Royalty.

Insider & Institutional Ownership

24.2% of Uranium Royalty 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Uranium Royalty and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uranium Royalty	25.88%	10.86%	7.44%
Gevo	-119.93%	-6.50%	-4.22%

Valuation and Earnings

This table compares Uranium Royalty and Gevo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uranium Royalty	$186.95 million	8.23	$40.25 million	$0.09	45.33
Gevo	$177.51 million	1.85	-$33.84 million	($0.89)	-1.49

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

Summary

Uranium Royalty beats Gevo on 11 of the 14 factors compared between the two stocks.

About Uranium Royalty

Uranium Royalty Corp. operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. The company has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona. Uranium Royalty Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.

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.