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

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 institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for China Energy Recovery and Gevo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Energy Recovery	0	0	0	0	0.00
Gevo	2	1	2	0	2.00

Gevo has a consensus target price of $2.75, indicating a potential upside of 91.64%. Given Gevo’s stronger consensus rating and higher possible upside, analysts clearly believe Gevo is more favorable than China Energy Recovery.

Risk and Volatility

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

Institutional & Insider Ownership

35.2% of Gevo shares are owned by institutional investors. 37.7% of China Energy Recovery shares are owned by insiders. Comparatively, 7.1% of Gevo shares are owned by 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.

Valuation and Earnings

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	$174.42 million	2.00	-$33.84 million	($0.13)	-11.04

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

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%

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.