CNX Resources (NYSE:CNX – Get Free Report) and Gevo (NASDAQ:GEVO – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Profitability
This table compares CNX Resources and Gevo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNX Resources | 36.53% | 10.40% | 5.14% |
| Gevo | -119.93% | -6.50% | -4.22% |
Valuation & Earnings
This table compares CNX Resources and Gevo”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNX Resources | $2.24 billion | 2.35 | $633.16 million | $5.99 | 5.93 |
| Gevo | $177.51 million | 1.57 | -$33.84 million | ($0.89) | -1.27 |
CNX Resources has higher revenue and earnings than Gevo. Gevo is trading at a lower price-to-earnings ratio than CNX Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CNX Resources has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Gevo has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
95.2% of CNX Resources shares are held by institutional investors. Comparatively, 35.2% of Gevo shares are held by institutional investors. 5.0% of CNX Resources shares are held by insiders. Comparatively, 7.1% of Gevo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for CNX Resources and Gevo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNX Resources | 3 | 8 | 0 | 0 | 1.73 |
| Gevo | 1 | 3 | 2 | 0 | 2.17 |
CNX Resources currently has a consensus target price of $34.25, indicating a potential downside of 3.64%. Gevo has a consensus target price of $2.55, indicating a potential upside of 125.66%. Given Gevo’s stronger consensus rating and higher probable upside, analysts clearly believe Gevo is more favorable than CNX Resources.
Summary
CNX Resources beats Gevo on 9 of the 14 factors compared between the two stocks.
About CNX Resources
CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.
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.
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