Renewable Energy Group (NASDAQ:REGI) and Clean Energy Fuels (NASDAQ:CLNE) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
Profitability
This table compares Renewable Energy Group and Clean Energy Fuels' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Renewable Energy Group | 22.72% | 13.11% | 9.25% |
| Clean Energy Fuels | 10.04% | 6.34% | 4.70% |
Volatility and Risk
Renewable Energy Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.
Valuation and Earnings
This table compares Renewable Energy Group and Clean Energy Fuels' 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 | $2.64 billion | 0.99 | $389.73 million | $3.75 | 15.78 |
| Clean Energy Fuels | $344.07 million | 6.66 | $20.42 million | $0.10 | 115.00 |
Renewable Energy Group has higher revenue and earnings than Clean Energy Fuels. Renewable Energy Group is trading at a lower price-to-earnings ratio than Clean Energy Fuels, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
96.2% of Renewable Energy Group shares are owned by institutional investors. Comparatively, 30.3% of Clean Energy Fuels shares are owned by institutional investors. 3.0% of Renewable Energy Group shares are owned by company insiders. Comparatively, 3.9% of Clean Energy Fuels shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Renewable Energy Group and Clean Energy Fuels, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Renewable Energy Group | 0 | 2 | 8 | 0 | 2.80 |
| Clean Energy Fuels | 0 | 2 | 3 | 0 | 2.60 |
Renewable Energy Group presently has a consensus price target of $89.1250, indicating a potential upside of 51.78%. Clean Energy Fuels has a consensus price target of $17.50, indicating a potential upside of 57.09%. Given Clean Energy Fuels' higher possible upside, analysts clearly believe Clean Energy Fuels is more favorable than Renewable Energy Group.
Summary
Renewable Energy Group beats Clean Energy Fuels on 9 of the 14 factors compared between the two stocks.
