Critical Survey: Archaea Energy (NYSE:LFG) and Montauk Renewables (NASDAQ:MNTK)



Archaea Energy (NYSE:LFG – Get Rating) and Montauk Renewables (NASDAQ:MNTK – Get Rating) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

55.9% of Archaea Energy shares are held by institutional investors. Comparatively, 5.0% of Montauk Renewables shares are held by institutional investors. 36.7% of Archaea Energy shares are held by company insiders. Comparatively, 55.3% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Archaea Energy and Montauk Renewables’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archaea Energy $77.13 million 23.82 -$23.90 million N/A N/A
Montauk Renewables $148.13 million 9.04 -$4.53 million $0.06 155.53

Montauk Renewables has higher revenue and earnings than Archaea Energy.

Volatility & Risk

Archaea Energy has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of -0.88, indicating that its share price is 188% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Archaea Energy N/A N/A -9.66%
Montauk Renewables 5.79% 5.74% 3.72%

Analyst Recommendations

This is a summary of current recommendations for Archaea Energy and Montauk Renewables, as provided by MarketBeat.com.

Sell ​​Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archaea Energy 0 0 5 0 3.00
Montauk Renewables 0 0 1 0 3.00

Archaea Energy presently has a consensus price target of $28.80, indicating a potential upside of 87.62%. Given Archaea Energy’s higher probable upside, analysts clearly believe Archaea Energy is more favorable than Montauk Renewables.

Summary

Montauk Renewables beats Archaea Energy on 6 of the 11 factors compared between the two stocks.

About Archaea Energy (Get Rating)

Archaea Energy Inc. It operates as a renewable natural gas (RNG) and renewable electricity producer in the United States. It owns and operates a diversified portfolio of 23 landfill gas recovery and processing projects across 12 states, including 13 projects that collectively generate approximately 177.3 MW of electric capacity and 10 projects that have capacity to produce approximately 27,480 million of British thermal units per day of pipeline -quality RNG. The company was founded in 2018 and is based in Houston, Texas.

About Montauk Renewables (Get Rating)

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 capture 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 long-term owner-operators of landfills and livestock farms, local utilities, and refiners in the natural gas and refining sectors. The company was founded in 1980 and is headquartered in Pittsburgh, Pennsylvania.



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