Pacific Ethanol (PEIX) vs. Its Competitors Head to Head Analysis

Pacific Ethanol (NASDAQ: PEIX) is one of 25 publicly-traded companies in the “Industrial organic chemicals” industry, but how does it contrast to its peers? We will compare Pacific Ethanol to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

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This table compares Pacific Ethanol and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pacific Ethanol $1.63 billion -$34.96 million -4.00
Pacific Ethanol Competitors $3.36 billion $346.13 million 4.21

Pacific Ethanol’s peers have higher revenue and earnings than Pacific Ethanol. Pacific Ethanol is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

78.3% of Pacific Ethanol shares are owned by institutional investors. Comparatively, 52.8% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 3.9% of Pacific Ethanol shares are owned by insiders. Comparatively, 14.0% of shares of all “Industrial organic chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Pacific Ethanol has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Pacific Ethanol’s peers have a beta of 0.49, meaning that their average stock price is 51% less volatile than the S&P 500.

Profitability

This table compares Pacific Ethanol and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Ethanol -2.14% -8.84% -4.96%
Pacific Ethanol Competitors -11.48% -11.19% -5.31%

Analyst Ratings

This is a breakdown of recent ratings for Pacific Ethanol and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Ethanol 0 0 3 0 3.00
Pacific Ethanol Competitors 120 475 738 26 2.49

Pacific Ethanol presently has a consensus price target of $11.33, indicating a potential upside of 233.33%. As a group, “Industrial organic chemicals” companies have a potential upside of 9.49%. Given Pacific Ethanol’s stronger consensus rating and higher possible upside, equities analysts plainly believe Pacific Ethanol is more favorable than its peers.

Summary

Pacific Ethanol beats its peers on 8 of the 13 factors compared.

Pacific Ethanol Company Profile

Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the United States. The company operates in two segments, Production and Marketing. It produces and markets ethanol; specialty alcohols; and co-products, such as wet distillers grains, dry distillers grains with solubles, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil, distillers yeast, and CO2, as well as markets ethanol produced by third parties. The company also offers ethanol transportation, storage, and delivery services through third-party service providers. It sells ethanol to integrated oil companies and gasoline marketers; distillers grains and other feed co-products to dairies and feedlots; and corn oil to poultry and biodiesel customers. The company owns and operates nine ethanol production facilities in the Western states of California, Oregon, and Idaho; and in the Midwestern states of Illinois and Nebraska. Pacific Ethanol, Inc. was founded in 2003 and is headquartered in Sacramento, California.

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