Renewable Energy Group (NASDAQ:REGI) and CVR Energy (NYSE:CVI) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Profitability
This table compares Renewable Energy Group and CVR Energy's 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% |
CVR Energy | -3.29% | -7.14% | -2.65% |
Risk & Volatility
Renewable Energy Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, CVR Energy has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Renewable Energy Group and CVR Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Renewable Energy Group | 0 | 2 | 8 | 0 | 2.80 |
CVR Energy | 0 | 4 | 2 | 0 | 2.33 |
Renewable Energy Group presently has a consensus price target of $89.1250, indicating a potential upside of 54.65%. CVR Energy has a consensus price target of $22.50, indicating a potential upside of 18.86%. Given Renewable Energy Group's stronger consensus rating and higher possible upside, equities research analysts plainly believe Renewable Energy Group is more favorable than CVR Energy.
Earnings and Valuation
This table compares Renewable Energy Group and CVR Energy's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Renewable Energy Group | $2.64 billion | 0.97 | $389.73 million | $3.75 | 15.37 |
CVR Energy | $6.36 billion | 0.30 | $380 million | $3.78 | 5.01 |
Renewable Energy Group has higher earnings, but lower revenue than CVR Energy. CVR Energy is trading at a lower price-to-earnings ratio than Renewable Energy Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
96.2% of Renewable Energy Group shares are held by institutional investors. 3.0% of Renewable Energy Group shares are held by company insiders. Comparatively, 0.0% of CVR Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Renewable Energy Group beats CVR Energy on 11 of the 14 factors compared between the two stocks.