Reviewing Genesis Energy (NYSE:GEL) & Alto Ingredients (NASDAQ:ALTO)

Alto Ingredients (NASDAQ:ALTO) and Genesis Energy (NYSE:GEL) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

42.4% of Alto Ingredients shares are owned by institutional investors. Comparatively, 66.8% of Genesis Energy shares are owned by institutional investors. 4.3% of Alto Ingredients shares are owned by insiders. Comparatively, 0.7% of Genesis Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alto Ingredients and Genesis Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alto Ingredients	$917.93 million	0.34	$13.34 million	$0.67	6.03
Genesis Energy	$1.63 billion	1.19	-$440.40 million	$0.19	83.47

Alto Ingredients has higher earnings, but lower revenue than Genesis Energy. Alto Ingredients is trading at a lower price-to-earnings ratio than Genesis Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Alto Ingredients has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Genesis Energy has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Alto Ingredients and Genesis Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alto Ingredients	5.51%	18.54%	11.61%
Genesis Energy	4.29%	55.96%	1.58%

Analyst Ratings

This is a summary of recent recommendations and price targets for Alto Ingredients and Genesis Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alto Ingredients	0	2	1	0	2.33
Genesis Energy	0	1	2	0	2.67

Alto Ingredients presently has a consensus target price of $10.00, suggesting a potential upside of 147.52%. Genesis Energy has a consensus target price of $18.00, suggesting a potential upside of 13.49%. Given Alto Ingredients’ higher probable upside, equities analysts plainly believe Alto Ingredients is more favorable than Genesis Energy.

Summary

Genesis Energy beats Alto Ingredients on 8 of the 14 factors compared between the two stocks.

About Alto Ingredients

Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.