Eco Wave Power Global AB (publ) (NASDAQ:WAVE) & Verde Clean Fuels (NASDAQ:VGAS) Critical Review

Verde Clean Fuels (NASDAQ:VGAS) and Eco Wave Power Global AB (publ) (NASDAQ:WAVE) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares Verde Clean Fuels and Eco Wave Power Global AB (publ)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verde Clean Fuels	N/A	N/A	-$3.33 million	($0.41)	-7.66
Eco Wave Power Global AB (publ)	$170,000.00	261.50	-$2.08 million	($0.54)	-14.83

Eco Wave Power Global AB (publ) has higher revenue and earnings than Verde Clean Fuels. Eco Wave Power Global AB (publ) is trading at a lower price-to-earnings ratio than Verde Clean Fuels, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

15.6% of Verde Clean Fuels shares are owned by institutional investors. Comparatively, 0.6% of Eco Wave Power Global AB (publ) shares are owned by institutional investors. 1.8% of Verde Clean Fuels shares are owned by company insiders. Comparatively, 31.3% of Eco Wave Power Global AB (publ) 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.

Profitability

This table compares Verde Clean Fuels and Eco Wave Power Global AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verde Clean Fuels	N/A	-9.44%	-8.79%
Eco Wave Power Global AB (publ)	N/A	-40.84%	-30.64%

Analyst Recommendations

This is a summary of current ratings for Verde Clean Fuels and Eco Wave Power Global AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verde Clean Fuels	1	0	0	0	1.00
Eco Wave Power Global AB (publ)	1	0	2	0	2.33

Eco Wave Power Global AB (publ) has a consensus target price of $14.50, suggesting a potential upside of 81.02%. Given Eco Wave Power Global AB (publ)’s stronger consensus rating and higher possible upside, analysts clearly believe Eco Wave Power Global AB (publ) is more favorable than Verde Clean Fuels.

Volatility and Risk

Verde Clean Fuels has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500. Comparatively, Eco Wave Power Global AB (publ) has a beta of -0.49, meaning that its share price is 149% less volatile than the S&P 500.

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.

About Eco Wave Power Global AB (publ)

Eco Wave Power Global AB (publ), a wave energy company, engages in the development of a wave energy conversion (WEC) technology that converts ocean and sea waves into clean electricity. The company also holds various agreements comprising power purchase agreements, concession agreements, and other agreements worldwide with pipeline of projects with approximately 404.7 megawatts. It has operations in the United States, Sweden, Israel, the British Overseas Territory of Gibraltar, Greece, Portugal, China, Australia, and internationally. The company was formerly known as EWPG Holding AB (publ) and changed its name to Eco Wave Power Global AB (publ) in June 2021. Eco Wave Power Global AB (publ) was founded in 2011 and is headquartered in Tel Aviv-Yafo, Israel.