Analyzing Montauk Renewables (MNTK) and The Competition

Montauk Renewables (NASDAQ:MNTK) is one of 75 public companies in the “Other Alt Energy” industry, but how does it contrast to its peers? We will compare Montauk Renewables to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Valuation & Earnings

This table compares Montauk Renewables and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Montauk Renewables	$175.74 million	$9.73 million	43.00
Montauk Renewables Competitors	$5.49 billion	$338.94 million	7.45

Montauk Renewables’ peers have higher revenue and earnings than Montauk Renewables. Montauk Renewables is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Montauk Renewables and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	0	3	0	0	2.00
Montauk Renewables Competitors	260	983	1645	55	2.51

Montauk Renewables currently has a consensus price target of $3.33, indicating a potential upside of 55.04%. As a group, “Other Alt Energy” companies have a potential downside of 4.16%. Given Montauk Renewables’ higher possible upside, analysts clearly believe Montauk Renewables is more favorable than its peers.

Profitability

This table compares Montauk Renewables and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	4.13%	2.84%	2.06%
Montauk Renewables Competitors	-41.99%	-24.92%	-4.00%

Institutional and Insider Ownership

16.4% of Montauk Renewables shares are owned by institutional investors. Comparatively, 42.3% of shares of all “Other Alt Energy” companies are owned by institutional investors. 54.7% of Montauk Renewables shares are owned by company insiders. Comparatively, 19.0% of shares of all “Other Alt Energy” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Montauk Renewables has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Montauk Renewables’ peers have a beta of -71.88, suggesting that their average share price is 7,288% less volatile than the S&P 500.

Summary

Montauk Renewables beats its peers on 7 of the 13 factors compared.

Montauk Renewables Company Profile

Montauk Renewables, Inc., a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that captures methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid. Its customers for RNG and renewable identification numbers (RIN) include large, long-term owner-operators of landfills and livestock farms, local utilities, and large refiners in the natural gas and refining sectors. Montauk Renewables, Inc. was founded in 1980 and is headquartered in Pittsburgh, Pennsylvania.