Head-To-Head Survey: Montauk Renewables (NASDAQ:MNTK) and Archaea Energy (NYSE:LFG)

Montauk Renewables (NASDAQ:MNTKGet Rating) and Archaea Energy (NYSE:LFGGet Rating) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Montauk Renewables 5.79% 5.74% 3.72%
Archaea Energy N/A N/A -9.66%

Analyst Ratings

This is a summary of recent ratings for Montauk Renewables and Archaea Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Montauk Renewables 0 0 1 0 3.00
Archaea Energy 0 0 4 0 3.00

Archaea Energy has a consensus price target of $29.50, indicating a potential upside of 58.94%. Given Archaea Energy’s higher possible upside, analysts clearly believe Archaea Energy is more favorable than Montauk Renewables.

Insider and Institutional Ownership

5.0% of Montauk Renewables shares are owned by institutional investors. Comparatively, 55.9% of Archaea Energy shares are owned by institutional investors. 55.3% of Montauk Renewables shares are owned by company insiders. Comparatively, 36.7% of Archaea Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Montauk Renewables has a beta of -0.88, indicating that its share price is 188% less volatile than the S&P 500. Comparatively, Archaea Energy has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Montauk Renewables and Archaea Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Montauk Renewables $148.13 million 13.77 -$4.53 million $0.06 236.71
Archaea Energy $77.13 million 28.80 -$23.90 million N/A N/A

Montauk Renewables has higher revenue and earnings than Archaea Energy.

Summary

Montauk Renewables beats Archaea Energy on 6 of the 11 factors compared between the two stocks.

Montauk Renewables Company Profile (Get Rating)

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 capture 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 long-term owner-operators of landfills and livestock farms, local utilities, and refiners in the natural gas and refining sectors. The company was founded in 1980 and is headquartered in Pittsburgh, Pennsylvania.

Archaea Energy Company Profile (Get Rating)

Archaea Energy Inc. operates as a renewable natural gas (RNG) and renewable electricity producer in the United States. It owns and operates a diversified portfolio of 23 landfill gas recovery and processing projects across 12 states, including 13 projects that collectively generate approximately 177.3 MW of electric capacity and 10 projects that have capacity to produce approximately 27,480 million of British thermal units per day of pipeline-quality RNG. The company was founded in 2018 and is based in Houston, Texas.

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