Gevo (NASDAQ:GEVO) & Cheniere Energy Partners (NYSE:CQP) Critical Survey

Gevo (NASDAQ:GEVO) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

35.2% of Gevo shares are owned by institutional investors. Comparatively, 46.6% of Cheniere Energy Partners shares are owned by institutional investors. 7.1% of Gevo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Gevo and Cheniere Energy Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gevo	$160.58 million	2.58	-$33.84 million	($0.13)	-13.08
Cheniere Energy Partners	$10.76 billion	2.90	$2.99 billion	$4.28	15.04

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

Profitability

This table compares Gevo and Cheniere Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gevo	-19.38%	-5.06%	-3.41%
Cheniere Energy Partners	22.27%	-4,929.80%	14.15%

Volatility and Risk

Gevo has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Cheniere Energy Partners has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Gevo and Cheniere Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	2	1	2	0	2.00
Cheniere Energy Partners	5	3	1	0	1.56

Gevo presently has a consensus price target of $6.58, suggesting a potential upside of 287.25%. Cheniere Energy Partners has a consensus price target of $60.43, suggesting a potential downside of 6.14%. Given Gevo’s stronger consensus rating and higher probable upside, equities analysts plainly believe Gevo is more favorable than Cheniere Energy Partners.

Summary

Cheniere Energy Partners beats Gevo on 8 of the 14 factors compared between the two stocks.

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.

About Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.