Comparing Keyuan Petrochemicals (OTCMKTS:KEYP) & Gevo (NASDAQ:GEVO)

Gevo (NASDAQ:GEVO) and Keyuan Petrochemicals (OTCMKTS:KEYP) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Gevo and Keyuan Petrochemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gevo	-510.04%	-14.95%	-12.69%
Keyuan Petrochemicals	N/A	N/A	N/A

Institutional & Insider Ownership

35.2% of Gevo shares are held by institutional investors. 4.0% of Gevo shares are held by 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gevo and Keyuan Petrochemicals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	0	1	1	0	2.50
Keyuan Petrochemicals	0	0	0	0	0.00

Gevo currently has a consensus price target of $7.58, suggesting a potential upside of 614.62%. Given Gevo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gevo is more favorable than Keyuan Petrochemicals.

Earnings and Valuation

This table compares Gevo and Keyuan Petrochemicals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gevo	$16.92 million	15.02	-$66.21 million	($0.35)	-3.03
Keyuan Petrochemicals	N/A	N/A	N/A	N/A	N/A

Keyuan Petrochemicals has lower revenue, but higher earnings than Gevo.

Summary

Gevo beats Keyuan Petrochemicals on 6 of the 9 factors compared between the two stocks.

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.

About Keyuan Petrochemicals

Keyuan Petrochemicals, Inc., through its subsidiaries, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan Synthetic Rubbers, Guangxi Keyuan and Zhongkexuneng, is engaged in the manufacture and sale of petrochemical products and rubber in the People’s Republic of China. The Company’s segments include the manufacture and sale of petrochemical products (petrochemical segment) and the manufacture and sale of rubber products (rubber segment). The Petrochemicals Segment includes the manufacturing and sales of mixed light aromatics, mixed heavy aromatics, fine propylene, propane, butane, liquefied petroleum gas (LPG), methyltert-butylether and styrene. The Rubber Segment includes the manufacturing and sales of various rubber products. It manufactures and supplies various petrochemical and rubber products, including petrochemical products, such as Benzene Toluene-Xylene Aromatics (BTX Aromatics), propylene, styrene, LPG, Methyl Tertiary Butyl Ether (MTBE) and rubber products.