Pacific Ethanol (PEIX) vs. Its Rivals Financial Analysis

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

Insider & Institutional Ownership

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79.0% of Pacific Ethanol shares are owned by institutional investors. Comparatively, 52.6% of shares of all “Industrial organic chemicals” companies are owned by institutional investors. 3.9% of Pacific Ethanol shares are owned by company insiders. Comparatively, 14.0% of shares of all “Industrial organic chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.



Profitability

This table compares Pacific Ethanol and its rivals’ 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 -17.73% -14.01% -6.55%

Earnings & Valuation

This table compares Pacific Ethanol and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pacific Ethanol $1.63 billion -$34.96 million -4.12
Pacific Ethanol Competitors $3.36 billion $346.16 million 3.98

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pacific Ethanol and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Ethanol 0 0 3 0 3.00
Pacific Ethanol Competitors 121 480 745 26 2.49

Pacific Ethanol presently has a consensus price target of $11.33, suggesting a potential upside of 223.81%. As a group, “Industrial organic chemicals” companies have a potential upside of 11.54%. Given Pacific Ethanol’s stronger consensus rating and higher possible upside, analysts plainly believe Pacific Ethanol is more favorable than its rivals.

Summary

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

About Pacific Ethanol

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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