Head to Head Review: OPAL Fuels (NASDAQ:OPAL) vs. Gevo (NASDAQ:GEVO)

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

Profitability

This table compares Gevo and OPAL Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gevo	-37.33%	-9.49%	-6.82%
OPAL Fuels	-1.02%	-1.84%	-0.37%

Volatility & Risk

Gevo has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, OPAL Fuels has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

35.2% of Gevo shares are held by institutional investors. Comparatively, 12.2% of OPAL Fuels shares are held by institutional investors. 6.8% of Gevo shares are held by company insiders. Comparatively, 84.4% of OPAL Fuels shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gevo	$120.93 million	4.41	-$78.64 million	($0.20)	-11.00
OPAL Fuels	$299.97 million	1.47	$11.03 million	$0.02	127.00

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

Analyst Ratings

This is a summary of current recommendations for Gevo and OPAL Fuels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	1	2	2	1	2.50
OPAL Fuels	2	4	0	0	1.67

Gevo presently has a consensus target price of $6.42, suggesting a potential upside of 191.67%. OPAL Fuels has a consensus target price of $2.81, suggesting a potential upside of 10.73%. Given Gevo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gevo is more favorable than OPAL Fuels.

Summary

OPAL Fuels beats Gevo on 8 of the 15 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 OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.