Montauk Renewables (NASDAQ:MNTK) and AuraSource (OTCMKTS:ARAO) Head to Head Comparison

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

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for AuraSource and Montauk Renewables, as provided by MarketBeat.

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

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

Insider and Institutional Ownership

22.2% of AuraSource shares are owned by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are owned by institutional investors. 4.7% of AuraSource shares are owned by insiders. Comparatively, 54.6% of Montauk Renewables shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares AuraSource and Montauk Renewables’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AuraSource	N/A	N/A	N/A	($0.05)	-0.81
Montauk Renewables	$184.62 million	3.48	$14.95 million	$0.15	29.80

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

Summary

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

About AuraSource

AuraSource, Inc. focuses on sales of electric automobiles. It operates through two segments, AuraMetal and AuraMoto. The AuraMetal segment focuses on the development and production of environmentally friendly and beneficiation process for complex ore, tailings, and slimes materials as industrial application solutions. The AuraMoto segment focuses on sourcing various vendors and customers in the automotive industry. AuraSource, Inc. is based in Tempe, Arizona.

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.