Head-To-Head Review: Teekay Tankers (NYSE:TNK) vs. Montauk Renewables (NASDAQ:MNTK)

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

Insider & Institutional Ownership

52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 1.9% of Teekay Tankers 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Teekay Tankers has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares Teekay Tankers 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
Teekay Tankers	$951.80 million	3.53	$351.19 million	$16.97	5.73
Montauk Renewables	$176.38 million	2.20	$1.75 million	$0.06	45.50

Teekay Tankers has higher revenue and earnings than Montauk Renewables. Teekay Tankers 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 Teekay Tankers and Montauk Renewables’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	51.35%	22.11%	20.23%
Montauk Renewables	3.40%	2.45%	1.47%

Analyst Recommendations

This is a summary of current ratings and price targets for Teekay Tankers and Montauk Renewables, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	3	3	1	2.50
Montauk Renewables	1	3	0	1	2.20

Teekay Tankers currently has a consensus price target of $77.00, indicating a potential downside of 20.79%. Montauk Renewables has a consensus price target of $1.80, indicating a potential downside of 34.07%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, analysts clearly believe Teekay Tankers is more favorable than Montauk Renewables.

Summary

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

About Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 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.