Financial Analysis: Verde Clean Fuels (VGAS) and The Competition

Verde Clean Fuels (NASDAQ:VGAS) is one of 44 publicly-traded companies in the “Industrial organic chemicals” industry, but how does it compare to its peers? We will compare Verde Clean Fuels to similar companies based on the strength of its dividends, institutional ownership, risk, profitability, analyst recommendations, valuation and earnings.

Institutional & Insider Ownership

15.6% of Verde Clean Fuels shares are owned by institutional investors. Comparatively, 48.2% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 12.6% of shares of all “Industrial organic chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Verde Clean Fuels and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Verde Clean Fuels	N/A	-$2.74 million	-10.04
Verde Clean Fuels Competitors	$4.07 billion	$14.67 million	5.57

Verde Clean Fuels’ peers have higher revenue and earnings than Verde Clean Fuels. Verde Clean Fuels 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Verde Clean Fuels and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verde Clean Fuels	0	0	0	0	N/A
Verde Clean Fuels Competitors	411	956	1431	61	2.40

As a group, “Industrial organic chemicals” companies have a potential upside of 16.28%. Given Verde Clean Fuels’ peers higher possible upside, analysts plainly believe Verde Clean Fuels has less favorable growth aspects than its peers.

Risk & Volatility

Verde Clean Fuels has a beta of -0.48, suggesting that its share price is 148% less volatile than the S&P 500. Comparatively, Verde Clean Fuels’ peers have a beta of -92.42, suggesting that their average share price is 9,342% less volatile than the S&P 500.

Profitability

This table compares Verde Clean Fuels and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verde Clean Fuels	N/A	-8.59%	-7.17%
Verde Clean Fuels Competitors	5.52%	-361.10%	-1.56%

Summary

Verde Clean Fuels peers beat Verde Clean Fuels on 8 of the 10 factors compared.

Verde Clean Fuels Company Profile

Verde Clean Fuels, Inc., operates as a clean energy technology company in the United States. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, natural gas, and other feedstocks into liquid hydrocarbons that can be used as gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is headquartered in Houston, Texas.