Vaalco Energy (NYSE:EGY – Get Free Report) and Gevo (NASDAQ:GEVO – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
50.3% of Vaalco Energy shares are held by institutional investors. Comparatively, 35.2% of Gevo shares are held by institutional investors. 3.0% of Vaalco Energy shares are held by company insiders. Comparatively, 7.1% of Gevo shares are held 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.
Volatility and Risk
Vaalco Energy has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vaalco Energy | 1 | 1 | 0 | 0 | 1.50 |
| Gevo | 1 | 3 | 2 | 0 | 2.17 |
Vaalco Energy presently has a consensus price target of $7.30, indicating a potential upside of 22.79%. Gevo has a consensus price target of $2.55, indicating a potential upside of 82.14%. Given Gevo’s stronger consensus rating and higher probable upside, analysts plainly believe Gevo is more favorable than Vaalco Energy.
Profitability
This table compares Vaalco Energy and Gevo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vaalco Energy | -31.11% | -14.36% | -6.41% |
| Gevo | -119.93% | -6.50% | -4.22% |
Earnings & Valuation
This table compares Vaalco Energy and Gevo”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vaalco Energy | $359.27 million | 1.74 | -$41.39 million | ($1.06) | -5.61 |
| Gevo | $177.51 million | 1.95 | -$33.84 million | ($0.89) | -1.57 |
Gevo has lower revenue, but higher earnings than Vaalco Energy. Vaalco Energy is trading at a lower price-to-earnings ratio than Gevo, indicating that it is currently the more affordable of the two stocks.
Summary
Gevo beats Vaalco Energy on 11 of the 14 factors compared between the two stocks.
About Vaalco Energy
VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
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.
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