Green Plains (NASDAQ:GPRE – Get Rating) and Gores Holdings VIII (NASDAQ:GIIX – Get Rating) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Earnings & Valuation
This table compares Green Plains and Gores Holdings VIII’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Green Plains | $2.83 billion | 0.58 | -$65.99 million | ($2.32) | -13.04 |
Gores Holdings VIII | N/A | N/A | -$8.68 million | N/A | N/A |
Gores Holdings VIII has lower revenue, but higher earnings than Green Plains.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Green Plains and Gores Holdings VIII, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Green Plains | 0 | 0 | 9 | 0 | 3.00 |
Gores Holdings VIII | 0 | 0 | 0 | 0 | N/A |
Green Plains currently has a consensus target price of $48.56, indicating a potential upside of 60.51%. Given Green Plains’ higher possible upside, equities analysts plainly believe Green Plains is more favorable than Gores Holdings VIII.
Profitability
This table compares Green Plains and Gores Holdings VIII’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Green Plains | -3.96% | -10.32% | -5.17% |
Gores Holdings VIII | N/A | N/A | -2.41% |
Insider and Institutional Ownership
72.0% of Gores Holdings VIII shares are held by institutional investors. 2.7% of Green Plains shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Green Plains has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Gores Holdings VIII has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
About Green Plains (Get Rating)
Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces and sells ethanol, including industrial-grade alcohol, distiller grains, and ultra-high protein and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and ultra-high protein and corn oil, as well as grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. As of December 31, 2021, it operated through 29 ethanol storage facilities; 4 fuel terminal facilities; and a fleet of approximately 2,300 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was founded in 2004 and is headquartered in Omaha, Nebraska.
About Gores Holdings VIII (Get Rating)
Gores Holdings VIII, Inc. focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in the industrials, technology, telecommunications, media and entertainment, business services, healthcare, and consumer products. The company was founded in 2020 and is based in Boulder, Colorado.
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