Montauk Renewables (NASDAQ:MNTK – Get Free Report) and Baytex Energy (OTCMKTS:BTEGF – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Volatility and Risk
Montauk Renewables has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Montauk Renewables and Baytex Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montauk Renewables | 1 | 3 | 0 | 1 | 2.20 |
| Baytex Energy | 0 | 1 | 1 | 0 | 2.50 |
Montauk Renewables currently has a consensus target price of $1.80, suggesting a potential downside of 13.75%. Given Montauk Renewables’ higher probable upside, analysts plainly believe Montauk Renewables is more favorable than Baytex Energy.
Profitability
This table compares Montauk Renewables and Baytex Energy’s 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% |
| Baytex Energy | 38.28% | 40.85% | 20.18% |
Earnings and Valuation
This table compares Montauk Renewables and Baytex Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Montauk Renewables | $176.38 million | 1.68 | $1.75 million | $0.06 | 34.78 |
| Baytex Energy | $2.79 billion | 1.04 | $1.29 billion | $1.47 | 3.61 |
Baytex Energy has higher revenue and earnings than Montauk Renewables. Baytex Energy 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 and Institutional Ownership
16.4% of Montauk Renewables shares are owned by institutional investors. 54.3% of Montauk Renewables shares are owned by insiders. Comparatively, 0.8% of Baytex Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Baytex Energy beats Montauk Renewables on 9 of the 15 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 Baytex Energy
Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.
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