Head-To-Head Comparison: Montauk Renewables (NASDAQ:MNTK) & BKV (NYSE:BKV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	0.40%	0.28%	0.17%
BKV	21.71%	6.43%	3.98%

Analyst Recommendations

This is a summary of recent ratings and price targets for Montauk Renewables and BKV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	4	0	0	1.80
BKV	0	2	8	0	2.80

Montauk Renewables currently has a consensus price target of $1.80, indicating a potential upside of 5.26%. BKV has a consensus price target of $33.88, indicating a potential upside of 38.63%. Given BKV’s stronger consensus rating and higher possible upside, analysts clearly believe BKV is more favorable than Montauk Renewables.

Risk & Volatility

Montauk Renewables has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Valuation & Earnings

This table compares Montauk Renewables and BKV”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	1.38	$1.75 million	$0.02	85.50
BKV	$1.01 billion	2.65	$173.13 million	$3.30	7.40

BKV has higher revenue and earnings than Montauk Renewables. BKV 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 held by institutional investors. 54.3% of Montauk Renewables shares are held by company insiders. Comparatively, 2.5% of BKV shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

BKV 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 BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.