Reviewing Verde Clean Fuels (NASDAQ:VGAS) and Methanex (NASDAQ:MEOH)

Methanex (NASDAQ:MEOH) and Verde Clean Fuels (NASDAQ:VGAS) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Insider & Institutional Ownership

73.5% of Methanex shares are owned by institutional investors. Comparatively, 15.6% of Verde Clean Fuels shares are owned by institutional investors. 1.0% of Methanex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Methanex	$3.72 billion	0.89	$174.14 million	$2.36	20.81
Verde Clean Fuels	N/A	N/A	-$2.74 million	($0.45)	-10.11

Methanex has higher revenue and earnings than Verde Clean Fuels. Verde Clean Fuels is trading at a lower price-to-earnings ratio than Methanex, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Methanex and Verde Clean Fuels, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methanex	0	3	4	0	2.57
Verde Clean Fuels	0	0	0	0	N/A

Methanex presently has a consensus price target of $54.88, indicating a potential upside of 11.72%. Given Methanex’s higher probable upside, equities research analysts plainly believe Methanex is more favorable than Verde Clean Fuels.

Profitability

This table compares Methanex and Verde Clean Fuels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Methanex	4.63%	5.38%	1.88%
Verde Clean Fuels	N/A	-8.59%	-7.17%

Risk and Volatility

Methanex has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Verde Clean Fuels has a beta of -0.59, meaning that its stock price is 159% less volatile than the S&P 500.

Summary

Methanex beats Verde Clean Fuels on 12 of the 12 factors compared between the two stocks.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.

About Verde Clean Fuels

Verde Clean Fuels, Inc., operates as a clean energy technology company in the United States. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, natural gas, and other feedstocks into liquid hydrocarbons that can be used as gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is headquartered in Houston, Texas.