Contrasting Gevo (NASDAQ:GEVO) and Clean Energy Pathways (OTCMKTS:CPWY)

Clean Energy Pathways (OTCMKTS:CPWY) and Gevo (NASDAQ:GEVO) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Clean Energy Pathways and Gevo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clean Energy Pathways	N/A	N/A	N/A	N/A	N/A
Gevo	$160.58 million	2.47	-$33.84 million	($0.13)	-12.54

Clean Energy Pathways has higher earnings, but lower revenue than Gevo.

Analyst Recommendations

This is a summary of current recommendations for Clean Energy Pathways and Gevo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clean Energy Pathways	0	0	0	0	0.00
Gevo	1	2	2	0	2.20

Gevo has a consensus price target of $2.88, indicating a potential upside of 76.38%. Given Gevo’s stronger consensus rating and higher possible upside, analysts plainly believe Gevo is more favorable than Clean Energy Pathways.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clean Energy Pathways	N/A	N/A	N/A
Gevo	-19.38%	-5.06%	-3.41%

Summary

Gevo beats Clean Energy Pathways on 6 of the 9 factors compared between the two stocks.

About Clean Energy Pathways

Clean Energy Pathways, Inc. operates as a multifaceted development-stage alternative energy company. It focuses on developing fossil fuel replacements utilizing clean burning biomass fuel, solar photo voltaic panels for power generation, and solar thermal application for heating water in commercial and residential applications; and LED lighting replacements for high energy and heat producing incandescent and mercury vapor lighting. It is also working to develop carbon neutral organic fertilizers. The company was formerly known as XcelPlus Global Holdings, Inc. and changed its name to Clean Energy Pathways, Inc. in August 2010. Clean Energy Pathways, Inc. was incorporated in 2000 and is based in Buffalo, Wyoming.

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.