Financial Analysis: FutureFuel (NYSE:FF) and Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ:SLNG) and FutureFuel (NYSE:FF) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Stabilis Solutions and FutureFuel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stabilis Solutions	1	1	0	0	1.50
FutureFuel	1	0	0	0	1.00

Profitability

This table compares Stabilis Solutions and FutureFuel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stabilis Solutions	-14.06%	-12.33%	-8.17%
FutureFuel	-19.94%	-19.75%	-15.47%

Institutional and Insider Ownership

3.8% of Stabilis Solutions shares are held by institutional investors. Comparatively, 44.6% of FutureFuel shares are held by institutional investors. 72.2% of Stabilis Solutions shares are held by company insiders. Comparatively, 42.6% of FutureFuel shares are held by company 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.

Volatility and Risk

Stabilis Solutions has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500. Comparatively, FutureFuel has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Stabilis Solutions and FutureFuel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stabilis Solutions	$68.25 million	1.30	-$1.35 million	($0.42)	-11.36
FutureFuel	$95.74 million	2.55	-$49.40 million	($0.70)	-7.96

Stabilis Solutions has higher earnings, but lower revenue than FutureFuel. Stabilis Solutions is trading at a lower price-to-earnings ratio than FutureFuel, indicating that it is currently the more affordable of the two stocks.

Summary

Stabilis Solutions beats FutureFuel on 7 of the 12 factors compared between the two stocks.

About Stabilis Solutions

Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.

About FutureFuel

FutureFuel Corp., together with its subsidiaries, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States. The company operates through two segments, Chemicals and Biofuels. The Chemicals segment provides various custom chemicals that are used in the coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents. The Biofuels segment is involved in the production and sale of biodiesel and petrodiesel blends; and markets its biodiesel products directly to customers through trucks, barges, and rail cars. FutureFuel Corp. is headquartered in Saint Louis, Missouri.