Financial Analysis: GE Vernova (GEV) vs. Its Peers

GE Vernova (NYSE:GEV) is one of 75 publicly-traded companies in the “Other Alt Energy” industry, but how does it weigh in compared to its competitors? We will compare GE Vernova to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Dividends

GE Vernova pays an annual dividend of $1.00 per share and has a dividend yield of 0.2%. GE Vernova pays out 14.4% of its earnings in the form of a dividend. As a group, “Other Alt Energy” companies pay a dividend yield of 1.0% and pay out 54.1% of their earnings in the form of a dividend.

Profitability

This table compares GE Vernova and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Vernova	5.42%	10.10%	2.04%
GE Vernova Competitors	-41.99%	-24.92%	-4.00%

Risk & Volatility

GE Vernova has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, GE Vernova’s competitors have a beta of -72.72, suggesting that their average stock price is 7,372% less volatile than the S&P 500.

Institutional and Insider Ownership

40.6% of shares of all “Other Alt Energy” companies are owned by institutional investors. 0.2% of GE Vernova shares are owned by insiders. Comparatively, 18.4% of shares of all “Other Alt Energy” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares GE Vernova and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GE Vernova	$34.94 billion	$1.55 billion	70.09
GE Vernova Competitors	$3.58 billion	$332.18 million	10.90

GE Vernova has higher revenue and earnings than its competitors. GE Vernova is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GE Vernova and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	0	8	19	4	2.87
GE Vernova Competitors	249	971	1617	50	2.51

GE Vernova presently has a consensus price target of $404.56, suggesting a potential downside of 16.83%. As a group, “Other Alt Energy” companies have a potential downside of 2.85%. Given GE Vernova’s competitors higher probable upside, analysts plainly believe GE Vernova has less favorable growth aspects than its competitors.

Summary

GE Vernova beats its competitors on 11 of the 15 factors compared.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.