Pacific Ethanol (NASDAQ: PEIX) and Aemetis (NASDAQ:AMTX) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Valuation & Earnings
This table compares Pacific Ethanol and Aemetis’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Ethanol||$1.62 billion||0.12||$1.41 million||($0.24)||-18.96|
|Aemetis||$143.16 million||0.10||-$15.63 million||($1.01)||-0.71|
Pacific Ethanol has higher revenue and earnings than Aemetis. Pacific Ethanol is trading at a lower price-to-earnings ratio than Aemetis, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.5% of Pacific Ethanol shares are held by institutional investors. Comparatively, 25.7% of Aemetis shares are held by institutional investors. 3.9% of Pacific Ethanol shares are held by company insiders. Comparatively, 24.1% of Aemetis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Pacific Ethanol and Aemetis, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pacific Ethanol presently has a consensus target price of $11.50, indicating a potential upside of 152.75%. Aemetis has a consensus target price of $2.00, indicating a potential upside of 177.78%. Given Aemetis’ higher possible upside, analysts plainly believe Aemetis is more favorable than Pacific Ethanol.
This table compares Pacific Ethanol and Aemetis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Pacific Ethanol has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Aemetis has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Pacific Ethanol beats Aemetis on 10 of the 13 factors compared between the two stocks.
Pacific Ethanol Company Profile
Pacific Ethanol, Inc. (Pacific Ethanol) is a marketer and producer of low-carbon renewable fuels in the Western United States. Pacific Ethanol markets all the ethanol produced by four ethanol production facilities located in California, Idaho and Oregon, or the Pacific Ethanol Plants, all the ethanol produced by three other ethanol producers in the Western United States and ethanol purchased from other third-party suppliers throughout the United States. It also markets ethanol co-products, including wet distiller’s grains and syrup (WDG), for the Pacific Ethanol Plants. Its 83% ownership interest in New PE Holdco LLC, the owner of each of the plant holding companies, that collectively own the Pacific Ethanol Plants. Its ethanol customers are integrated oil companies and gasoline marketers who blend ethanol into gasoline. Effective September 02, 2014, Pacific Ethanol Inc raised its interest to 96% from 91%, by acquiring a 5% interest, in PE Op Co.
Aemetis Company Profile
Aemetis, Inc. is an international renewable fuels and biochemicals company. The Company is focused on the production of fuels and chemicals through the acquisition, development and commercialization of technologies that replace traditional petroleum-based products by conversion of first-generation ethanol and biodiesel plants into biorefineries. Its segments include North America and India. The North America segment includes the Company’s approximately 60 million gallon per year capacity ethanol manufacturing plant in Keyes, California and its technology lab in College Park, Maryland. The India segment includes the Company’s over 50 million gallon per year capacity biodiesel manufacturing plant in Kakinada, the administrative offices in Hyderabad, India, and the holding companies in Nevada and Mauritius. The Keyes plant produces denatured ethanol, Wet Distillers Grains, corn oil and Condensed Distillers Solubles. It produces biodiesel and refined glycerin at the Kakinada plant.
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