Financial Comparison: Gevo (NASDAQ:GEVO) & China Energy Recovery (OTCMKTS:CGYV)

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

Volatility and Risk

China Energy Recovery has a beta of -1.09, indicating that its stock price is 209% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

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

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

Earnings & Valuation

This table compares China Energy Recovery and Gevo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Energy Recovery	N/A	N/A	N/A	N/A	N/A
Gevo	$160.58 million	2.20	-$33.84 million	($0.13)	-11.15

China Energy Recovery has higher earnings, but lower revenue than Gevo.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Energy Recovery and Gevo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Energy Recovery	0	0	0	0	0.00
Gevo	1	2	2	0	2.20

Gevo has a consensus target price of $2.75, indicating a potential upside of 89.66%. Given Gevo’s stronger consensus rating and higher possible upside, analysts plainly believe Gevo is more favorable than China Energy Recovery.

Institutional and Insider Ownership

35.2% of Gevo shares are owned by institutional investors. 37.7% of China Energy Recovery shares are owned by company insiders. Comparatively, 7.1% of Gevo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Gevo beats China Energy Recovery on 6 of the 10 factors compared between the two stocks.

About China Energy Recovery

China Energy Recovery, Inc. designs, manufactures, installs, and services waste heat recovery systems in China. The company’s energy recovery systems capture industrial waste energy to produce electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate saleable emissions credits. It serves petrochemical, paper manufacturing, refining/power generation, coke processing, cement, and steel industries. The company was incorporated in 1998 and is headquartered in Shanghai, China.

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.