Texas Pacific Land (NYSE:TPL – Get Free Report) and Montauk Renewables (NASDAQ:MNTK – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
59.9% of Texas Pacific Land shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 6.9% of Texas Pacific Land shares are held by company insiders. Comparatively, 54.7% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Texas Pacific Land and Montauk Renewables, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Texas Pacific Land | 1 | 2 | 1 | 0 | 2.00 |
| Montauk Renewables | 1 | 3 | 0 | 0 | 1.75 |
Risk & Volatility
Texas Pacific Land has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.
Profitability
This table compares Texas Pacific Land and Montauk Renewables’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Texas Pacific Land | 60.31% | 36.18% | 32.60% |
| Montauk Renewables | 0.15% | 0.10% | 0.07% |
Earnings and Valuation
This table compares Texas Pacific Land and Montauk Renewables”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Texas Pacific Land | $798.19 million | 45.88 | $481.38 million | $6.98 | 76.11 |
| Montauk Renewables | $176.38 million | 0.90 | $1.75 million | $0.02 | 56.00 |
Texas Pacific Land has higher revenue and earnings than Montauk Renewables. Montauk Renewables is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.
Summary
Texas Pacific Land beats Montauk Renewables on 12 of the 14 factors compared between the two stocks.
About Texas Pacific Land
Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.
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.
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