Critical Analysis: Fervo Energy (FRVO) and Its Competitors

Fervo Energy (NASDAQ:FRVO) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it contrast to its competitors? We will compare Fervo Energy to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Fervo Energy and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fervo Energy	1	1	14	2	2.94
Fervo Energy Competitors	958	2974	3775	186	2.40

Fervo Energy currently has a consensus price target of $39.53, indicating a potential upside of 391.71%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 153.30%. Given Fervo Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Fervo Energy is more favorable than its competitors.

Insider & Institutional Ownership

35.9% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Fervo Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fervo Energy	N/A	N/A	N/A
Fervo Energy Competitors	-37.00%	13.62%	0.71%

Valuation & Earnings

This table compares Fervo Energy and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fervo Energy	$140,000.00	-$70.51 million	-1.96
Fervo Energy Competitors	$6.24 billion	$816.69 million	15.07

Fervo Energy’s competitors have higher revenue and earnings than Fervo Energy. Fervo Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Fervo Energy competitors beat Fervo Energy on 7 of the 12 factors compared.

Fervo Energy Company Profile

Fervo Energy Company is a geothermal energy developer, builds, owns and operates geothermal power facilities. Fervo Energy Company is based in Houston, Texas.