Financial Survey: Montauk Renewables (NASDAQ:MNTK) and ReNew Energy Global (NASDAQ:RNW)

ReNew Energy Global (NASDAQ:RNWGet Free Report) and Montauk Renewables (NASDAQ:MNTKGet Free Report) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

43.6% of ReNew Energy Global shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 8.7% of ReNew Energy Global shares are held by company insiders. Comparatively, 54.7% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for ReNew Energy Global and Montauk Renewables, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReNew Energy Global 0 2 1 0 2.33
Montauk Renewables 1 5 0 0 1.83

ReNew Energy Global currently has a consensus target price of $7.25, indicating a potential upside of 23.72%. Montauk Renewables has a consensus target price of $3.33, indicating a potential upside of 98.41%. Given Montauk Renewables’ higher probable upside, analysts plainly believe Montauk Renewables is more favorable than ReNew Energy Global.

Profitability

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

Net Margins Return on Equity Return on Assets
ReNew Energy Global 5.37% 7.90% 1.08%
Montauk Renewables -5.72% -3.57% -2.50%

Risk and Volatility

ReNew Energy Global has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Earnings and Valuation

This table compares ReNew Energy Global and Montauk Renewables”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ReNew Energy Global $1.14 billion 1.87 $45.00 million $0.31 18.90
Montauk Renewables $160.68 million 1.49 $9.73 million ($0.06) -28.00

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

Summary

ReNew Energy Global beats Montauk Renewables on 12 of the 14 factors compared between the two stocks.

About ReNew Energy Global

(Get Free Report)

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

About Montauk Renewables

(Get Free Report)

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.

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