Green Plains (NASDAQ:GPRE – Get Free Report) and PetroQuest Energy (OTCMKTS:PQUE – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
1.6% of PetroQuest Energy shares are owned by institutional investors. 1.4% of Green Plains shares are owned by company insiders. Comparatively, 8.8% of PetroQuest Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Green Plains and PetroQuest Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Green Plains | 6.78% | 14.52% | 7.33% |
| PetroQuest Energy | -4.93% | N/A | -3.76% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Plains | $2.09 billion | 0.54 | -$121.28 million | $1.59 | 10.15 |
| PetroQuest Energy | $108.29 million | 0.00 | -$6.63 million | ($0.55) | -0.04 |
PetroQuest Energy has lower revenue, but higher earnings than Green Plains. PetroQuest Energy is trading at a lower price-to-earnings ratio than Green Plains, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Green Plains has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, PetroQuest Energy has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Green Plains and PetroQuest Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Plains | 3 | 3 | 3 | 0 | 2.00 |
| PetroQuest Energy | 0 | 0 | 0 | 0 | 0.00 |
Green Plains presently has a consensus price target of $15.43, indicating a potential downside of 4.41%. Given Green Plains’ stronger consensus rating and higher possible upside, research analysts plainly believe Green Plains is more favorable than PetroQuest Energy.
Summary
Green Plains beats PetroQuest Energy on 10 of the 14 factors compared between the two stocks.
About Green Plains
Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.
About PetroQuest Energy
PetroQuest Energy, Inc. operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops, and operates oil and gas properties. As of December 31, 2017, it had estimated proved reserves of 1.8 million barrels of oil; 19.4 billion cubic feet equivalent of natural gas liquids; and 125.4 billion cubic feet of natural gas. PetroQuest Energy, Inc. was founded in 1983 and is headquartered in Lafayette, Louisiana.
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