Origin Materials (OTCMKTS:ORGN) and Gevo (NASDAQ:GEVO) Financial Analysis

Gevo (NASDAQ:GEVO) and Origin Materials (OTCMKTS:ORGN) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gevo and Origin Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gevo 0 0 3 0 3.00
Origin Materials 0 2 0 0 2.00

Gevo presently has a consensus price target of $14.67, suggesting a potential upside of 125.99%. Origin Materials has a consensus price target of $10.00, suggesting a potential upside of 36.61%. Given Gevo’s stronger consensus rating and higher possible upside, analysts clearly believe Gevo is more favorable than Origin Materials.

Insider & Institutional Ownership

36.2% of Gevo shares are held by institutional investors. Comparatively, 16.9% of Origin Materials shares are held by institutional investors. 2.4% of Gevo shares are held by insiders. Comparatively, 30.0% of Origin Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gevo and Origin Materials’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gevo $5.54 million 231.03 -$40.19 million ($0.51) -12.73
Origin Materials N/A N/A -$130,000.00 N/A N/A

Origin Materials has lower revenue, but higher earnings than Gevo.

Profitability

This table compares Gevo and Origin Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gevo -4,297.25% -11.81% -10.73%
Origin Materials N/A 11.95% 1.27%

Gevo Company Profile

Gevo, Inc. is a renewable chemicals and next generation biofuels company, which focuses on the development and commercialization of renewable alternatives to petroleum-based products. It operates through the following segments: Gevo; Gevo Development and Agri-Energy. The Gevo segment focuses in the research and development activities related to the future production of isobutanol, including the development of the firm’s proprietary biocatalysts, the production and sale of renewable jet and other fuels, the retrofit process, and the next generation of chemicals and biofuels that will be based on the company’s isobutanol technology. The Gevo Development and Agri-Energy segment is currently responsible for the operation of its agri energy facility and the production of ethanol, isobutanol, and related products. The company was founded by Christopher Michael Ryan, Matthew W. Peters, Peter Meinhold, and Frances Hamilton Arnold on June 9, 2005 and is headquartered in Englewood, CO.

Origin Materials Company Profile

Origin Materials, Inc. operates as a carbon negative materials company. Its platform converts the carbon found in biomass into useful materials. The company was founded in 2008 and is headquartered in West Sacramento, California.

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