Baytex Energy (OTCMKTS:BTEGF – Get Free Report) and Montauk Renewables (NASDAQ:MNTK – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Baytex Energy and Montauk Renewables, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 0 | 1 | 1 | 0 | 2.50 |
| Montauk Renewables | 1 | 3 | 0 | 1 | 2.20 |
Montauk Renewables has a consensus target price of $1.80, suggesting a potential downside of 15.49%. Given Montauk Renewables’ higher probable upside, analysts plainly believe Montauk Renewables is more favorable than Baytex Energy.
Profitability
This table compares Baytex Energy and Montauk Renewables’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | 38.28% | 40.85% | 20.18% |
| Montauk Renewables | 3.40% | 2.45% | 1.47% |
Valuation & Earnings
This table compares Baytex Energy and Montauk Renewables”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $2.79 billion | 1.04 | $1.29 billion | $1.47 | 3.62 |
| Montauk Renewables | $176.38 million | 1.72 | $1.75 million | $0.06 | 35.50 |
Baytex Energy has higher revenue and earnings than Montauk Renewables. Baytex Energy is trading at a lower price-to-earnings ratio than Montauk Renewables, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
16.4% of Montauk Renewables shares are held by institutional investors. 0.8% of Baytex Energy shares are held by insiders. Comparatively, 54.3% of Montauk Renewables shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Baytex Energy has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Summary
Baytex Energy beats Montauk Renewables on 9 of the 15 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.
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.
Receive News & Ratings for Baytex Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Baytex Energy and related companies with MarketBeat.com's FREE daily email newsletter.
