Critical Review: Fervo Energy (FRVO) vs. Its Peers

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

Profitability

This table compares Fervo Energy and its peers’ 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 peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fervo Energy	$140,000.00	-$70.51 million	-2.01
Fervo Energy Competitors	$6.24 billion	$816.69 million	15.11

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

Insider and Institutional Ownership

35.1% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by 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.

Analyst Ratings

This is a summary of recent recommendations for Fervo Energy and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fervo Energy	1	1	14	2	2.94
Fervo Energy Competitors	955	2973	3774	186	2.40

Fervo Energy currently has a consensus target price of $39.53, suggesting a potential upside of 379.19%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 151.45%. Given Fervo Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Fervo Energy is more favorable than its peers.

Summary

Fervo Energy peers 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.