Montauk Renewables (NASDAQ:MNTK – Get Free Report) and W2 Energy (OTCMKTS:AEPT – Get Free Report) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Profitability
This table compares Montauk Renewables and W2 Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Montauk Renewables | 1.46% | 1.01% | 0.72% |
| W2 Energy | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations for Montauk Renewables and W2 Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montauk Renewables | 0 | 3 | 0 | 0 | 2.00 |
| W2 Energy | 0 | 0 | 0 | 0 | 0.00 |
Volatility & Risk
Montauk Renewables has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, W2 Energy has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.
Valuation & Earnings
This table compares Montauk Renewables and W2 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 | $175.74 million | 1.63 | $9.73 million | $0.02 | 100.50 |
| W2 Energy | $23.81 million | 0.01 | -$15.06 million | ($0.03) | -0.01 |
Montauk Renewables has higher revenue and earnings than W2 Energy. W2 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. Comparatively, 2.3% of W2 Energy shares are owned by institutional investors. 54.7% of Montauk Renewables shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Montauk Renewables beats W2 Energy on 13 of the 13 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 W2 Energy
American Environmental Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. It engages in the designing, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. The company also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services; educational marketing platforms of podcasts and videography; and construction, drilling, flowback, completions, and well-site services. The company was formerly known as American Energy Partners, Inc. and changed its name to American Environmental Partners, Inc. in October 2023. The company was incorporated in 1997 and is based in Canonsburg, Pennsylvania.
Receive News & Ratings for Montauk Renewables Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Montauk Renewables and related companies with MarketBeat.com's FREE daily email newsletter.
