Critical Survey: Montauk Renewables (NASDAQ:MNTK) & Iren (OTC:IRDEY)

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

Earnings and Valuation

This table compares Montauk Renewables and Iren’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$184.62 million	3.48	$14.95 million	$0.15	29.80
Iren	N/A	N/A	N/A	$0.61	27.31

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	10.58%	8.44%	5.94%
Iren	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Montauk Renewables and Iren, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	0	1	1	0	2.50
Iren	0	0	0	0	N/A

Montauk Renewables currently has a consensus target price of $7.00, suggesting a potential upside of 56.60%. Given Montauk Renewables’ higher possible upside, equities research analysts clearly believe Montauk Renewables is more favorable than Iren.

Insider and Institutional Ownership

16.4% of Montauk Renewables shares are owned by institutional investors. 54.6% of Montauk Renewables shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Montauk Renewables beats Iren on 9 of the 10 factors compared between the two stocks.

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.

About Iren

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents; 11,279 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 35 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 105 photovoltaic production plants with an installed capacity of 142 MW. Iren SpA is based in Reggio Emilia, Italy.