Financial Contrast: Gevo (NASDAQ:GEVO) versus Lightbridge (NASDAQ:LTBR)

Lightbridge (NASDAQ:LTBR) and Gevo (NASDAQ:GEVO) are both small-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Lightbridge and Gevo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightbridge	N/A	-18.71%	-18.49%
Gevo	-37.33%	-9.49%	-6.82%

Volatility & Risk

Lightbridge has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Gevo has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lightbridge and Gevo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightbridge	N/A	N/A	-$11.79 million	($0.80)	-17.61
Gevo	$16.92 million	26.64	-$78.64 million	($0.20)	-9.30

Lightbridge has higher earnings, but lower revenue than Gevo. Lightbridge is trading at a lower price-to-earnings ratio than Gevo, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Lightbridge and Gevo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightbridge	1	0	0	0	1.00
Gevo	1	2	2	0	2.20

Gevo has a consensus price target of $6.42, suggesting a potential upside of 244.98%. Given Gevo’s stronger consensus rating and higher possible upside, analysts clearly believe Gevo is more favorable than Lightbridge.

Insider & Institutional Ownership

9.1% of Lightbridge shares are owned by institutional investors. Comparatively, 35.2% of Gevo shares are owned by institutional investors. 5.8% of Lightbridge shares are owned by company insiders. Comparatively, 4.0% of Gevo shares are owned by company 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

Gevo beats Lightbridge on 9 of the 13 factors compared between the two stocks.

About Lightbridge

Lightbridge Corporation, together with its subsidiaries, engages in developing nuclear fuel technology. It develops and commercializes metallic nuclear fuels. The company was formerly known as Thorium Power, Ltd. and changed its name to Lightbridge Corporation in September 2009. Lightbridge Corporation is headquartered in Reston, Virginia.

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.