Comparing Montauk Renewables (NASDAQ:MNTK) & Teekay Tankers (NYSE:TNK)

Montauk Renewables (NASDAQ:MNTK) and Teekay Tankers (NYSE:TNK) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

Montauk Renewables has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500.

Valuation & Earnings

This table compares Montauk Renewables and Teekay Tankers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$176.38 million	2.32	$1.75 million	$0.06	47.83
Teekay Tankers	$1.15 billion	3.09	$351.19 million	$16.97	6.08

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

Insider & Institutional Ownership

16.4% of Montauk Renewables shares are owned by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are owned by institutional investors. 54.3% of Montauk Renewables shares are owned by company insiders. Comparatively, 1.9% of Teekay Tankers shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Montauk Renewables and Teekay Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	3.40%	2.45%	1.47%
Teekay Tankers	51.35%	22.11%	20.23%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Montauk Renewables and Teekay Tankers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	3	0	1	2.20
Teekay Tankers	1	3	3	1	2.50

Montauk Renewables currently has a consensus price target of $1.80, indicating a potential downside of 37.28%. Teekay Tankers has a consensus price target of $77.00, indicating a potential downside of 25.40%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, analysts plainly believe Teekay Tankers is more favorable than Montauk Renewables.

Summary

Teekay Tankers beats Montauk Renewables on 11 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 Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.