Contrasting EDP – Energias de Portugal (OTCMKTS:ELCPF) & Montauk Renewables (NASDAQ:MNTK)

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

Insider and Institutional Ownership

31.6% of EDP – Energias de Portugal shares are owned by institutional investors. Comparatively, 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares EDP – Energias de Portugal and Montauk Renewables’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EDP – Energias de Portugal	N/A	N/A	N/A
Montauk Renewables	10.58%	8.44%	5.94%

Valuation and Earnings

This table compares EDP – Energias de Portugal and Montauk Renewables’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EDP – Energias de Portugal	N/A	N/A	N/A	$0.28	14.91
Montauk Renewables	$194.54 million	3.23	$14.95 million	$0.15	29.13

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

Analyst Ratings

This is a breakdown of current ratings and target prices for EDP – Energias de Portugal and Montauk Renewables, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EDP – Energias de Portugal	0	0	0	0	N/A
Montauk Renewables	0	1	1	0	2.50

Montauk Renewables has a consensus price target of $7.00, suggesting a potential upside of 60.18%. Given Montauk Renewables’ higher possible upside, analysts clearly believe Montauk Renewables is more favorable than EDP – Energias de Portugal.

Summary

Montauk Renewables beats EDP – Energias de Portugal on 8 of the 10 factors compared between the two stocks.

About EDP – Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.

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.