Reviewing Alvopetro Energy (OTCMKTS:ALVOF) and Montauk Renewables (NASDAQ:MNTK)

Alvopetro Energy (OTCMKTS:ALVOF) and Montauk Renewables (NASDAQ:MNTK) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

Alvopetro Energy has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alvopetro Energy and Montauk Renewables, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvopetro Energy	0	1	0	0	2.00
Montauk Renewables	1	2	0	1	2.25

Montauk Renewables has a consensus target price of $2.00, indicating a potential upside of 38.89%. Given Montauk Renewables’ stronger consensus rating and higher possible upside, analysts clearly believe Montauk Renewables is more favorable than Alvopetro Energy.

Insider and Institutional Ownership

16.4% of Montauk Renewables shares are held by institutional investors. 54.3% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Alvopetro Energy and Montauk Renewables’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alvopetro Energy	39.86%	24.88%	18.98%
Montauk Renewables	0.15%	0.10%	0.07%

Valuation and Earnings

This table compares Alvopetro Energy and Montauk Renewables”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alvopetro Energy	$57.95 million	3.83	$23.10 million	$0.61	9.83
Montauk Renewables	$176.38 million	1.17	$1.75 million	$0.02	72.00

Alvopetro Energy has higher earnings, but lower revenue than Montauk Renewables. Alvopetro Energy is trading at a lower price-to-earnings ratio than Montauk Renewables, indicating that it is currently the more affordable of the two stocks.

Summary

Montauk Renewables beats Alvopetro Energy on 8 of the 14 factors compared between the two stocks.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.

About Montauk Renewables

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.