Contrasting Clean Energy Fuels (CLNE) and Vectren (VVC)

Clean Energy Fuels (NASDAQ: CLNE) and Vectren (NYSE:VVC) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

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Vectren pays an annual dividend of $1.80 per share and has a dividend yield of 2.8%. Clean Energy Fuels does not pay a dividend. Vectren pays out 69.2% of its earnings in the form of a dividend. Vectren has raised its dividend for 58 consecutive years.

Earnings & Valuation

This table compares Clean Energy Fuels and Vectren’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clean Energy Fuels $341.60 million 0.74 -$79.23 million ($0.53) -3.11
Vectren $2.66 billion 2.00 $216.00 million $2.60 24.58

Vectren has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Vectren, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

33.5% of Clean Energy Fuels shares are owned by institutional investors. Comparatively, 64.1% of Vectren shares are owned by institutional investors. 26.7% of Clean Energy Fuels shares are owned by insiders. Comparatively, 0.1% of Vectren shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Clean Energy Fuels and Vectren, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clean Energy Fuels 0 0 0 0 N/A
Vectren 0 3 1 0 2.25

Vectren has a consensus price target of $64.67, suggesting a potential upside of 1.17%. Given Vectren’s higher possible upside, analysts clearly believe Vectren is more favorable than Clean Energy Fuels.

Profitability

This table compares Clean Energy Fuels and Vectren’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clean Energy Fuels -23.20% -15.55% -9.41%
Vectren 8.13% 11.91% 3.62%

Volatility & Risk

Clean Energy Fuels has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Vectren has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Summary

Vectren beats Clean Energy Fuels on 12 of the 15 factors compared between the two stocks.

About Clean Energy Fuels

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

About Vectren

Vectren Corporation provides energy delivery services to residential, commercial, and industrial and other contract customers. The company offers natural gas distribution and transportation services, and electric transmission and distribution services; and owns and operates coal-fired, natural gas or oil-fired, and landfill gas electric generating facilities with an installed generating capacity of 1,248 megawatts. Its electric transmission system consists of approximately 1,028 circuit miles of 345, 138, and 69 kilovolt lines, and 34 substations; and distribution system comprises 4,543 circuit miles of lower voltage overhead lines and 462 trench miles of conduit containing 2,405 circuit miles of underground distribution cable, as well as 85 distribution substations and 54,919 distribution transformers. The company also provides underground pipeline construction and repair services; and energy performance contracting and sustainable infrastructure, such as renewables, distributed generation, and combined heat and power projects, as well as invests in energy-related opportunities and services. It serves various industries comprising automotive assembly, parts, and accessories; feed, flour, and grain processing; metal castings and plastic products; gypsum products; electrical equipment, metal specialties, and glass and steel finishing; pharmaceutical and nutritional products; gasoline and oil products; ethanol; and coal mining. The company supplies natural gas services to approximately 1,022,000 customers in Indiana and Ohio; and electric services to approximately 145,200 customers in Indiana. Vectren Corporation was incorporated in 1999 and is headquartered in Evansville, Indiana.

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