Verde Clean Fuels (NASDAQ:VGAS) vs. Methanex (NASDAQ:MEOH) Head-To-Head Comparison

Methanex (NASDAQ:MEOH) and Verde Clean Fuels (NASDAQ:VGAS) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Methanex and Verde Clean Fuels, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methanex	0	3	4	0	2.57
Verde Clean Fuels	0	0	0	0	N/A

Methanex presently has a consensus price target of $54.88, suggesting a potential upside of 9.18%. Given Methanex’s higher probable upside, equities analysts plainly believe Methanex is more favorable than Verde Clean Fuels.

Insider and Institutional Ownership

73.5% of Methanex shares are held by institutional investors. Comparatively, 15.6% of Verde Clean Fuels shares are held by institutional investors. 1.0% of Methanex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Methanex and Verde Clean Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Methanex	4.63%	5.38%	1.88%
Verde Clean Fuels	N/A	-8.59%	-7.17%

Volatility and Risk

Methanex has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Verde Clean Fuels has a beta of -0.59, suggesting that its stock price is 159% less volatile than the S&P 500.

Earnings & Valuation

This table compares Methanex and Verde Clean Fuels’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Methanex	$3.60 billion	0.94	$174.14 million	$2.36	21.30
Verde Clean Fuels	N/A	N/A	-$2.74 million	($0.45)	-10.67

Methanex has higher revenue and earnings than Verde Clean Fuels. Verde Clean Fuels is trading at a lower price-to-earnings ratio than Methanex, indicating that it is currently the more affordable of the two stocks.

Summary

Methanex beats Verde Clean Fuels on 12 of the 12 factors compared between the two stocks.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.

About Verde Clean Fuels

Verde Clean Fuels, Inc., operates as a clean energy technology company in the United States. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, natural gas, and other feedstocks into liquid hydrocarbons that can be used as gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is headquartered in Houston, Texas.