Contrasting Montauk Renewables (NASDAQ:MNTK) and Inpex (OTCMKTS:IPXHY)

Montauk Renewables (NASDAQ:MNTK) and Inpex (OTCMKTS:IPXHY) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Montauk Renewables and Inpex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$189.10 million	2.16	$1.75 million	$0.06	47.83
Inpex	$13.45 billion	2.08	$2.52 billion	$2.38	9.92

Inpex has higher revenue and earnings than Montauk Renewables. Inpex 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 summary of recent ratings and price targets for Montauk Renewables and Inpex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	3	0	1	2.20
Inpex	0	3	0	0	2.00

Montauk Renewables currently has a consensus target price of $1.80, indicating a potential downside of 37.28%. Given Montauk Renewables’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Montauk Renewables is more favorable than Inpex.

Institutional and Insider Ownership

16.4% of Montauk Renewables shares are held by institutional investors. Comparatively, 0.0% of Inpex shares are held by institutional investors. 54.3% of Montauk Renewables shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	3.40%	2.45%	1.47%
Inpex	21.93%	8.53%	5.51%

Volatility & Risk

Montauk Renewables has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Inpex has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Summary

Montauk Renewables beats Inpex on 8 of the 14 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 Inpex

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.