OPAL Fuels (NASDAQ:OPAL) vs. Greenfire Resources (NYSE:GFR) Critical Survey

OPAL Fuels (NASDAQ:OPAL) and Greenfire Resources (NYSE:GFR) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

12.2% of OPAL Fuels shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 84.6% of OPAL Fuels shares are held by insiders. Comparatively, 20.0% of Greenfire Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

OPAL Fuels has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares OPAL Fuels and Greenfire Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OPAL Fuels	-1.02%	N/A	-0.37%
Greenfire Resources	20.20%	15.64%	10.47%

Valuation and Earnings

This table compares OPAL Fuels and Greenfire Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPAL Fuels	$299.97 million	1.54	$11.03 million	$0.02	133.50
Greenfire Resources	$600.67 million	0.60	$88.61 million	$1.35	3.84

Greenfire Resources has higher revenue and earnings than OPAL Fuels. Greenfire Resources is trading at a lower price-to-earnings ratio than OPAL Fuels, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for OPAL Fuels and Greenfire Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPAL Fuels	2	4	0	0	1.67
Greenfire Resources	1	1	0	0	1.50

OPAL Fuels currently has a consensus target price of $2.81, suggesting a potential upside of 5.34%. Given OPAL Fuels’ stronger consensus rating and higher possible upside, equities analysts clearly believe OPAL Fuels is more favorable than Greenfire Resources.

Summary

Greenfire Resources beats OPAL Fuels on 7 of the 13 factors compared between the two stocks.

About OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.