FutureFuel (NYSE: FF) and Renewable Energy Group (NASDAQ:REGI) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Earnings & Valuation
This table compares FutureFuel and Renewable Energy Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FutureFuel||$275.03 million||2.24||$23.51 million||N/A||N/A|
|Renewable Energy Group||$2.16 billion||0.32||-$79.07 million||($2.04)||-8.93|
FutureFuel has higher earnings, but lower revenue than Renewable Energy Group.
FutureFuel pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Renewable Energy Group does not pay a dividend.
This table compares FutureFuel and Renewable Energy Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Renewable Energy Group||6.23%||29.89%||16.15%|
Risk & Volatility
FutureFuel has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Renewable Energy Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for FutureFuel and Renewable Energy Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Renewable Energy Group||0||1||2||0||2.67|
Renewable Energy Group has a consensus price target of $16.67, suggesting a potential downside of 8.42%. Given Renewable Energy Group’s higher probable upside, analysts plainly believe Renewable Energy Group is more favorable than FutureFuel.
Insider and Institutional Ownership
44.1% of FutureFuel shares are owned by institutional investors. 43.3% of FutureFuel shares are owned by company insiders. Comparatively, 2.0% of Renewable Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
FutureFuel beats Renewable Energy Group on 8 of the 13 factors compared between the two stocks.
FutureFuel Corp., through its subsidiaries, manufactures and sells diversified chemical products, bio-based products, and bio-based specialty chemical products in the United States. It operates in two segments, Chemicals and Biofuels. The Chemicals segment manufactures and sells custom chemicals, including agrochemicals and intermediates, detergent additives, biocides intermediates, specialty polymers, dyes, stabilizers, and chemicals intermediates; and chemicals used in consumer products consisting of cosmetics and personal care products, specialty polymers, and specialty products used in the fuels industry. This segment also offers performance chemicals, such as polymer modifiers that enhance stain resistance and dye-ability to nylon and polyester fibers; various small-volume specialty chemicals and solvents for a range of applications; and a family of acetal based solvents, including diethoxymethane, dimethoxymethane, dibutoxymethane, glycerol formal, and phenol sulfonic acid. Its chemical products are used in various markets and end uses comprising detergent, agrochemical, automotive, oil and gas, coatings, nutrition, and polymer additives. The Biofuels segment produces and sells biodiesel. It also sells petrodiesel in blends; and engages in buying, selling, and shipping of refined petroleum products on common carrier pipelines. This segment markets its biodiesel products directly to customers through railcars, tank trucks, and barges in the United States. The company was formerly known as Viceroy Acquisition Corporation and changed its name to FutureFuel Corp. in October 2006. FutureFuel Corp. was incorporated in 2005 and is headquartered in Clayton, Missouri.
About Renewable Energy Group
Renewable Energy Group, Inc. produces and sells biofuels and renewable chemicals in North America. The company operates through Biomass-Based Diesel, Services, Renewable Chemicals, and Corporate and Other segments. It acquires feedstock; and manages construction and operates biomass-based diesel production facilities. The company also produces biomass-based diesel from a range of feedstocks, including inedible corn oil, used cooking oil, and inedible animal fat, as well as soybean or canola oil; and markets, distributes, and sells biomass-based diesel and its co-products. In addition, it is involved in the purchase and resale of biomass-based diesel, petroleum-based diesel, renewable identification numbers, California Low Carbon Fuel Standard credits, and raw material feedstocks acquired from third parties; and sale of glycerin, free fatty acids, naphtha, and other co-products of the biomass-based diesel production process. Further, the company provides facility management and operational services to biomass-based diesel production facilities, as well as to other clean-tech companies; and construction management services for biomass-based diesel production facilities. Additionally, it engages in the production of renewable chemicals, advanced biofuels, and other products; and trading of petroleum-based heating oil and diesel fuel. Renewable Energy Group, Inc. was founded in 1996 and is headquartered in Ames, Iowa.
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