Contrasting Shell (NYSE:SHEL) & NextNRG (NASDAQ:NXXT)

Shell (NYSE:SHEL) and NextNRG (NASDAQ:NXXT) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Shell and NextNRG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shell	8.55%	14.34%	6.74%
NextNRG	-62.97%	N/A	-431.08%

Earnings & Valuation

This table compares Shell and NextNRG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$296.60 billion	0.90	$17.84 billion	$9.06	10.54
NextNRG	$81.83 million	0.19	-$85.74 million	($4.40)	-0.21

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

Risk and Volatility

Shell has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, NextNRG has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Insider and Institutional Ownership

28.6% of Shell shares are held by institutional investors. Comparatively, 10.6% of NextNRG shares are held by institutional investors. 1.0% of Shell shares are held by insiders. Comparatively, 53.7% of NextNRG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Shell and NextNRG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	11	7	0	2.39
NextNRG	1	1	1	0	2.00

Shell presently has a consensus price target of $107.46, suggesting a potential upside of 12.59%. NextNRG has a consensus price target of $15.00, suggesting a potential upside of 1,552.35%. Given NextNRG’s higher probable upside, analysts plainly believe NextNRG is more favorable than Shell.

Summary

Shell beats NextNRG on 12 of the 14 factors compared between the two stocks.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

About NextNRG

NextNRG, Inc. engages in the provision of fuel delivery services. It provides app-based interface customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Yehuda Levy and Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.