Alto Ingredients and Green Plains are both evolving beyond traditional ethanol production, but Alto Ingredients currently offers a more compelling turnaround and valuation story. Its improving profitability, stronger crush margins, growing specialty alcohol and ingredients business, and exposure to Section 45Z incentives provide multiple avenues for earnings growth. While Green Plains continues to advance its low-carbon and carbon capture initiatives and benefits from greater scale, Alto Ingredients' improving operational execution, strengthening balance sheet and leverage to improve industry fundamentals could position the stock to deliver stronger upside potential over the near to medium term. Both stocks carry a Zacks Rank #1 (Strong Buy).
Alto Ingredients IncGrowing specialty alcohol and ingredients business and exposure to Section 45Z incentives provide multiple avenues for earnings growth.
Green Plains Renewable Energy Inc