Head to Head Survey: Renewable Energy Group (REGI) and Braskem (BAK)
Renewable Energy Group (NASDAQ: REGI) and Braskem (NYSE:BAK) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
This table compares Renewable Energy Group and Braskem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Renewable Energy Group||-3.66%||-8.19%||-4.45%|
Braskem pays an annual dividend of $0.75 per share and has a dividend yield of 2.7%. Renewable Energy Group does not pay a dividend. Braskem pays out 23.4% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Renewable Energy Group and Braskem’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Renewable Energy Group||$2.16 billion||0.23||-$79.07 million||($2.04)||-6.35|
|Braskem||$18.26 billion||0.62||$1.28 billion||$3.20||8.84|
Braskem has higher revenue and earnings than Renewable Energy Group. Renewable Energy Group is trading at a lower price-to-earnings ratio than Braskem, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Renewable Energy Group has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Braskem has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Renewable Energy Group and Braskem, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Renewable Energy Group||0||1||2||0||2.67|
Renewable Energy Group presently has a consensus target price of $15.33, indicating a potential upside of 18.40%. Given Renewable Energy Group’s higher possible upside, analysts plainly believe Renewable Energy Group is more favorable than Braskem.
Institutional & Insider Ownership
0.7% of Braskem shares are held by institutional investors. 2.0% of Renewable Energy Group shares are held by company insiders. Comparatively, 0.0% of Braskem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Braskem beats Renewable Energy Group on 12 of the 15 factors compared between the two stocks.
Renewable Energy Group Company Profile
Renewable Energy Group, Inc. is focused on providing cleaner, lower carbon intensity products and services. The Company is a producer of biomass-based diesel in North America. Its segments include Biomass-based diesel, Services, Renewable Chemicals and Corporate and other activities. It is involved in various activities related to biomass-based diesel production, from acquiring feedstock, managing construction and operating biomass-based diesel production facilities to marketing, selling and distributing biomass-based diesel and its co-products. As of December 31, 2016, it owned and operated a network of 14 biorefineries. As of December 31, 2016, 12 biorefineries were located in the United States and two in Germany, and 13 of which produce biodiesel or renewable hydrocarbon diesel and had an aggregate nameplate production capacity of 502 million gallons per year (mmgy). As of December 31, 2016, it also operated one microbial fermentation facility and one feedstock processing facility.
Braskem Company Profile
Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. Its Basic Petrochemicals segment offers olefins, such as ethylene, polymer and chemical grade propylene, butadiene, and butene-1; BTX products comprising benzene, para-xylene, and toluene; fuels, including automotive gasoline, liquefied petroleum gas, ethyl tertiary butyl ether, and methyl tertiary butyl ether; intermediates, such as cumene; and aliphatics, aromatics, and hydrogenates solvents, as well as specialties, such as isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also supplies electric energy, steam, compressed air, and other products to second-generation producers. Its Polyolefins segment produces polyethylene, including LDPE, LLDPE, HDPE, ultra-high molecular weight polyethylene, and EVA; green polyethylene from renewable resources; and polypropylene. This segment's products are used in plastic films for food and industrial packaging; bottles, shopping bags, and other consumer goods containers; automotive parts; engineering and infra-structure goods; and household appliances. Its Vinyls segment produces polyvinyl chloride, caustic soda, chlorine, hydrogen, caustic soda flake, and sodium hypochlorite. The company's USA and Europe segment produces polypropylene in the United States and Germany. Braskem S.A.'s Mexico segment produces, operates, and sells ethylene, HDPE, and LDPE in Mexico. It also imports and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.
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