Gevo (NASDAQ:GEVO) & Brookfield Renewable (NYSE:BEPC) Critical Analysis

Gevo (NASDAQ:GEVO) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Profitability

This table compares Gevo and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gevo	-37.33%	-9.49%	-6.82%
Brookfield Renewable	-62.07%	-21.54%	-5.01%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	1	2	2	0	2.20
Brookfield Renewable	1	1	3	0	2.40

Gevo presently has a consensus price target of $6.42, suggesting a potential upside of 243.14%. Brookfield Renewable has a consensus price target of $40.00, suggesting a potential downside of 9.91%. Given Gevo’s higher possible upside, equities research analysts clearly believe Gevo is more favorable than Brookfield Renewable.

Institutional & Insider Ownership

35.2% of Gevo shares are held by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are held by institutional investors. 4.0% of Gevo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Gevo has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Earnings and Valuation

This table compares Gevo and Brookfield Renewable”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gevo	$16.92 million	26.78	-$78.64 million	($0.20)	-9.35
Brookfield Renewable	$3.73 billion	1.73	-$2.34 billion	($0.89)	-49.89

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

Summary

Gevo beats Brookfield Renewable on 9 of the 14 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 Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.