Head to Head Comparison: Montauk Renewables (NASDAQ:MNTK) versus Inpex (OTCMKTS:IPXHY)

Inpex (OTCMKTS:IPXHY) and Montauk Renewables (NASDAQ:MNTK) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Inpex and Montauk Renewables, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inpex	0	3	0	0	2.00
Montauk Renewables	1	3	0	1	2.20

Montauk Renewables has a consensus target price of $1.80, suggesting a potential downside of 35.71%. Given Montauk Renewables’ stronger consensus rating and higher possible upside, analysts plainly believe Montauk Renewables is more favorable than Inpex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inpex	21.93%	8.53%	5.51%
Montauk Renewables	3.40%	2.45%	1.47%

Earnings & Valuation

This table compares Inpex and Montauk Renewables”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inpex	$13.45 billion	2.11	$2.52 billion	$2.38	10.08
Montauk Renewables	$176.38 million	2.26	$1.75 million	$0.06	46.67

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

Institutional & Insider Ownership

0.0% of Inpex shares are owned by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are owned by institutional investors. 54.3% of Montauk Renewables shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Inpex has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Summary

Montauk Renewables beats Inpex on 8 of the 14 factors compared between the two stocks.

About Inpex

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

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.