Contrasting American Power Group (OTCMKTS:APGI) and Montauk Renewables (NASDAQ:MNTK)

Montauk Renewables (NASDAQ:MNTK) and American Power Group (OTCMKTS:APGI) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	-5.72%	-3.57%	-2.50%
American Power Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Montauk Renewables and American Power Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$175.74 million	1.25	$9.73 million	($0.06)	-25.67
American Power Group	$2.13 million	4.73	-$1.71 million	N/A	N/A

Montauk Renewables has higher revenue and earnings than American Power Group.

Insider & Institutional Ownership

16.4% of Montauk Renewables shares are held by institutional investors. 54.7% of Montauk Renewables shares are held by company insiders. Comparatively, 75.8% of American Power Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Montauk Renewables and American Power Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	4	0	1	2.17
American Power Group	0	0	0	0	0.00

Montauk Renewables currently has a consensus price target of $3.33, indicating a potential upside of 116.45%. Given Montauk Renewables’ stronger consensus rating and higher probable upside, research analysts clearly believe Montauk Renewables is more favorable than American Power Group.

Risk and Volatility

Montauk Renewables has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, American Power Group has a beta of -0.5, indicating that its stock price is 150% less volatile than the S&P 500.

Summary

Montauk Renewables beats American Power Group on 7 of the 12 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 American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.