Contrasting Montauk Renewables (NASDAQ:MNTK) & BKV (NYSE:BKV)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BKV and Montauk Renewables, as provided by MarketBeat.com.

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

BKV presently has a consensus price target of $33.88, indicating a potential upside of 43.89%. Montauk Renewables has a consensus price target of $1.80, indicating a potential downside of 1.10%. Given BKV’s stronger consensus rating and higher possible upside, analysts clearly believe BKV is more favorable than Montauk Renewables.

Risk and Volatility

BKV has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

16.4% of Montauk Renewables shares are held by institutional investors. 2.5% of BKV shares are held by company insiders. Comparatively, 54.3% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares BKV and Montauk Renewables”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BKV	$1.01 billion	2.55	$173.13 million	$3.30	7.13
Montauk Renewables	$176.38 million	1.47	$1.75 million	$0.02	91.00

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.

Profitability

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

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

Summary

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

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.

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.