Montauk Renewables (NASDAQ:MNTK – Get Free Report) and Brookfield Renewable (NYSE:BEPC – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
16.4% of Montauk Renewables shares are owned by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are owned by institutional investors. 54.7% of Montauk Renewables shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Montauk Renewables and Brookfield Renewable”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Montauk Renewables | $175.74 million | 1.20 | $9.73 million | ($0.06) | -24.67 |
| Brookfield Renewable | $5.88 billion | 0.94 | $236.00 million | ($0.89) | -42.72 |
Brookfield Renewable has higher revenue and earnings than Montauk Renewables. Brookfield Renewable is trading at a lower price-to-earnings ratio than Montauk Renewables, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Montauk Renewables and Brookfield Renewable, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montauk Renewables | 1 | 5 | 0 | 0 | 1.83 |
| Brookfield Renewable | 1 | 1 | 3 | 0 | 2.40 |
Montauk Renewables currently has a consensus price target of $3.33, suggesting a potential upside of 125.23%. Brookfield Renewable has a consensus price target of $39.75, suggesting a potential upside of 4.56%. Given Montauk Renewables’ higher probable upside, equities research analysts clearly believe Montauk Renewables is more favorable than Brookfield Renewable.
Profitability
This table compares Montauk Renewables and Brookfield Renewable’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Montauk Renewables | -5.72% | -3.57% | -2.50% |
| Brookfield Renewable | -34.58% | -12.74% | -3.20% |
Risk and Volatility
Montauk Renewables has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Summary
Montauk Renewables beats Brookfield Renewable on 8 of the 14 factors compared between the two stocks.
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.
About Brookfield Renewable
Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.
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