1 Renewable Energy Stock to Buy and 1 to Avoid
The rising use of renewable sources of energy is an indisputable trend here to stay. But the performance of renewable energy companies has generally been erratic so far, giving investors a tough time in selecting the right stock for them. Two emerging players in the renewables space -- though with different offerings -- are Renewable Energy Group (NASDAQ: REGI) and Clean Energy Fuels (NASDAQ: CLNE). While one of the two looks like a buy, it's best to avoid the other one for now. Let's see why.
While both Renewable Energy Group and Clean Energy Fuels are renewable energy companies, their operations differ significantly. Renewable Energy Group is a top producer and distributor of biofuels, primarily biodiesel and renewable diesel. The company carries out all the operations from acquiring feedstock to constructing and operating biorefineries and distributing fuel through terminals. Renewable Energy Group owns 13 biorefineries -- 11 in the U.S. and two in Germany. The company has diesel production capacity of 505 million gallons per year.
Image source: Getty Images.
Source Fool.com
