Montauk Renewables (NASDAQ:MNTK) and NextNRG (NASDAQ:NXXT) Head to Head Review

NextNRG (NASDAQ:NXXT) and Montauk Renewables (NASDAQ:MNTK) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for NextNRG and Montauk Renewables, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextNRG	1	1	1	1	2.50
Montauk Renewables	1	5	0	0	1.83

NextNRG presently has a consensus price target of $5.50, indicating a potential upside of 333.07%. Montauk Renewables has a consensus price target of $3.33, indicating a potential upside of 119.30%. Given NextNRG’s stronger consensus rating and higher possible upside, research analysts clearly believe NextNRG is more favorable than Montauk Renewables.

Volatility & Risk

NextNRG has a beta of -0.56, indicating that its share price is 156% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Insider and Institutional Ownership

10.6% of NextNRG shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 69.1% of NextNRG shares are held by insiders. Comparatively, 54.7% of Montauk Renewables shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares NextNRG 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
NextNRG	$27.77 million	6.15	-$16.19 million	($2.02)	-0.63
Montauk Renewables	$175.74 million	1.23	$9.73 million	($0.06)	-25.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NextNRG	-85.79%	N/A	-270.09%
Montauk Renewables	-5.72%	-3.57%	-2.50%

Summary

NextNRG beats Montauk Renewables on 8 of the 15 factors compared between the two stocks.

About NextNRG

NextNRG, Inc. engages in the provision of fuel delivery services. It provides app-based interface customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Yehuda Levy and Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.

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.