Clean Energy Fuels (NASDAQ:CLNE) & Archaea Energy (NYSE:LFG) Critical Analysis

Archaea Energy (NYSE:LFGGet Rating) and Clean Energy Fuels (NASDAQ:CLNEGet Rating) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Profitability

This table compares Archaea Energy and Clean Energy Fuels’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archaea Energy N/A N/A -9.66%
Clean Energy Fuels -42.05% -2.84% -2.29%

Analyst Ratings

This is a summary of current ratings and price targets for Archaea Energy and Clean Energy Fuels, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archaea Energy 0 0 5 0 3.00
Clean Energy Fuels 0 0 6 0 3.00

Archaea Energy presently has a consensus price target of $28.80, indicating a potential upside of 47.09%. Clean Energy Fuels has a consensus price target of $13.50, indicating a potential upside of 179.50%. Given Clean Energy Fuels’ higher probable upside, analysts plainly believe Clean Energy Fuels is more favorable than Archaea Energy.

Risk & Volatility

Archaea Energy has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Insider and Institutional Ownership

55.9% of Archaea Energy shares are held by institutional investors. Comparatively, 42.2% of Clean Energy Fuels shares are held by institutional investors. 36.7% of Archaea Energy shares are held by company insiders. Comparatively, 3.4% of Clean Energy Fuels shares are held by company 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.

Valuation and Earnings

This table compares Archaea Energy and Clean Energy Fuels’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archaea Energy $77.13 million 30.38 -$23.90 million N/A N/A
Clean Energy Fuels $255.65 million 4.21 -$93.15 million ($0.52) -9.29

Archaea Energy has higher earnings, but lower revenue than Clean Energy Fuels.

Summary

Archaea Energy beats Clean Energy Fuels on 6 of the 11 factors compared between the two stocks.

Archaea Energy Company Profile (Get Rating)

Archaea Energy Inc. operates as a renewable natural gas (RNG) and renewable electricity producer in the United States. It owns and operates a diversified portfolio of 23 landfill gas recovery and processing projects across 12 states, including 13 projects that collectively generate approximately 177.3 MW of electric capacity and 10 projects that have capacity to produce approximately 27,480 million of British thermal units per day of pipeline-quality RNG. The company was founded in 2018 and is based in Houston, Texas.

Clean Energy Fuels Company Profile (Get Rating)

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets and related fueling solutions, primarily in the United States and Canada. It supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for medium and heavy-duty vehicles; and offers operation and maintenance services for public and private vehicle fleet customer stations. The company also designs, builds, operates, and maintains fueling stations; and sells and services compressors and other equipment that are used in RNG production and fueling stations. In addition, it transports and sells CNG, RNG, and LNG through virtual natural gas pipelines and interconnects; sells U.S. federal, state, and local government credits, such as RNG as a vehicle fuel, including Renewable Identification Numbers and Low Carbon Fuel Standards credits; and obtains federal, state, and local credits, grants, and incentives. Further, the company focuses on developing, owning, and operating dairy and other livestock waste RNG projects. It serves heavy-duty trucking, airports, refuse, public transit, industrial, and institutional energy users, as well as government fleets. As of December 31, 2021, the company served approximately 1,000 fleet customers operating approximately 48,000 vehicles; and owned, operated, or supplied approximately 548 fueling stations in 42 states in the United States and 25 fueling stations in Canada. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California.

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