Montauk Renewables (NASDAQ:MNTK) & Gevo (NASDAQ:GEVO) Head-To-Head Survey

Gevo (NASDAQ:GEVO) and Montauk Renewables (NASDAQ:MNTK) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Risk & Volatility

Gevo has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Institutional and Insider Ownership

35.2% of Gevo shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 4.0% of Gevo shares are held by insiders. Comparatively, 54.7% of Montauk Renewables shares are held by 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 Ratings

This is a summary of recent recommendations and price targets for Gevo and Montauk Renewables, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gevo	1	2	1	0	2.00
Montauk Renewables	1	5	0	0	1.83

Gevo presently has a consensus target price of $8.13, suggesting a potential upside of 288.76%. Montauk Renewables has a consensus target price of $3.33, suggesting a potential upside of 109.64%. Given Gevo’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gevo is more favorable than Montauk Renewables.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gevo	-37.33%	-9.49%	-6.82%
Montauk Renewables	-5.72%	-3.57%	-2.50%

Earnings and Valuation

This table compares Gevo 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
Gevo	$16.92 million	29.93	-$78.64 million	($0.20)	-10.45
Montauk Renewables	$175.74 million	1.29	$9.73 million	($0.06)	-26.50

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

About Gevo

Gevo, Inc. operates as a carbon abatement company. It operates through three segments: Gevo, Agri-Energy, and Renewable Natural Gas. The company focuses on transforming renewable energy into energy-dense liquid hydrocarbons that can be used as renewable fuels. It offers renewable gasoline and diesel, isobutanol, sustainable aviation fuel, renewable natural gas, isobutylene, ethanol, and animal feed and protein. The company was formerly known as Methanotech, Inc. and changed its name to Gevo, Inc. in March 2006. Gevo, Inc. was incorporated in 2005 and is headquartered in Englewood, Colorado.

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.