Granite Ridge Resources (NYSE:GRNT – Get Free Report) and Gevo (NASDAQ:GEVO – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Granite Ridge Resources and Gevo”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Granite Ridge Resources | $450.31 million | 1.45 | $24.35 million | ($0.21) | -23.50 |
| Gevo | $160.58 million | 2.45 | -$33.84 million | ($0.89) | -1.79 |
Profitability
This table compares Granite Ridge Resources and Gevo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Granite Ridge Resources | -5.56% | 4.67% | 2.33% |
| Gevo | -119.93% | -6.50% | -4.22% |
Risk and Volatility
Granite Ridge Resources has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Granite Ridge Resources and Gevo, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Granite Ridge Resources | 1 | 1 | 2 | 1 | 2.60 |
| Gevo | 1 | 3 | 2 | 0 | 2.17 |
Granite Ridge Resources currently has a consensus target price of $10.00, indicating a potential upside of 102.63%. Gevo has a consensus target price of $2.55, indicating a potential upside of 60.38%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Granite Ridge Resources is more favorable than Gevo.
Insider & Institutional Ownership
31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 35.2% of Gevo shares are owned by institutional investors. 8.6% of Granite Ridge Resources shares are owned by insiders. Comparatively, 7.1% of Gevo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Granite Ridge Resources beats Gevo on 10 of the 14 factors compared between the two stocks.
About Granite Ridge Resources
Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.
About Gevo
Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.
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