Montauk Renewables (NASDAQ:MNTK) vs. Golar LNG (NASDAQ:GLNG) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Golar LNG	31.27%	8.91%	3.75%
Montauk Renewables	3.40%	2.45%	1.47%

Volatility and Risk

Golar LNG has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares Golar LNG and Montauk Renewables”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golar LNG	$523.38 million	9.60	$65.68 million	$1.60	31.01
Montauk Renewables	$189.10 million	2.21	$1.75 million	$0.06	48.83

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

Analyst Recommendations

This is a summary of current recommendations for Golar LNG and Montauk Renewables, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golar LNG	0	2	4	1	2.86
Montauk Renewables	1	3	0	1	2.20

Golar LNG presently has a consensus price target of $64.25, indicating a potential upside of 29.51%. Montauk Renewables has a consensus price target of $1.80, indicating a potential downside of 38.57%. Given Golar LNG’s stronger consensus rating and higher possible upside, analysts clearly believe Golar LNG is more favorable than Montauk Renewables.

Institutional & Insider Ownership

92.2% of Golar LNG shares are owned by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are owned by institutional investors. 0.0% of Golar LNG shares are owned by company insiders. Comparatively, 54.3% of Montauk Renewables shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Golar LNG beats Montauk Renewables on 11 of the 14 factors compared between the two stocks.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.

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.