Gevo (NASDAQ:GEVO) and Renewable Energy Group (NASDAQ:REGI) are two players in the biofuel space. While the two companies are part of expanding addressable markets, their stocks have lost significant momentum after touching multi-year highs recently. Which between the two presents an attractive investment opportunity right now?.As climate change concerns have gained pace in recent times, governments around the world are investing heavily in clean energy solutions. As a result, there are several companies that are expanding their portfolio of renewable energy assets in wind, solar and hydropower.
In addition, biofuel is a renewable energy source that is fast gaining traction due to its pertinence in the transportation space. Biofuels are widely expected to lower carbon emissions and reduce the dependence on fossil fuel products by a significant margin. In fact, Market Research Future expects the biofuel market to touch $246 billion by the end of 2027, growing at an annual rate of 7.8% in this period.
With this in mind, today I’ll analyze Gevo (GEVO) and Renewable Energy Group (REGI), to determine which biofuel stock is a better buy right now.