Head-To-Head Survey: Montauk Renewables (NASDAQ:MNTK) & Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and Montauk Renewables (NASDAQ:MNTK) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Enlight Renewable Energy has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enlight Renewable Energy and Montauk Renewables”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$582.26 million	N/A	$132.10 million	$1.02	71.06
Montauk Renewables	$175.74 million	1.27	$9.73 million	($0.06)	-26.17

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	22.69%	7.35%	1.82%
Montauk Renewables	-5.72%	-3.57%	-2.50%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Enlight Renewable Energy and Montauk Renewables, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	2	2	3	0	2.14
Montauk Renewables	1	4	0	1	2.17

Enlight Renewable Energy presently has a consensus price target of $43.50, suggesting a potential downside of 39.98%. Montauk Renewables has a consensus price target of $3.33, suggesting a potential upside of 112.31%. Given Montauk Renewables’ stronger consensus rating and higher probable upside, analysts clearly believe Montauk Renewables is more favorable than Enlight Renewable Energy.

Institutional and Insider Ownership

38.9% of Enlight Renewable Energy shares are owned by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are owned by institutional investors. 54.7% of Montauk Renewables shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Enlight Renewable Energy beats Montauk Renewables on 10 of the 14 factors compared between the two stocks.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

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.