Montauk Renewables (NASDAQ:MNTK – Get Free Report) and Frontline (NYSE:FRO – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
16.4% of Montauk Renewables shares are owned by institutional investors. Comparatively, 22.7% of Frontline shares are owned by institutional investors. 54.3% of Montauk Renewables shares are owned by insiders. Comparatively, 48.1% of Frontline shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Montauk Renewables and Frontline’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% |
| Frontline | 49.47% | 44.24% | 20.89% |
Risk and Volatility
Montauk Renewables has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
Earnings & Valuation
This table compares Montauk Renewables and Frontline”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Montauk Renewables | $176.38 million | 1.71 | $1.75 million | $0.06 | 35.33 |
| Frontline | $1.97 billion | 5.79 | $379.08 million | $6.67 | 7.69 |
Frontline has higher revenue and earnings than Montauk Renewables. Frontline 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 recent recommendations for Montauk Renewables and Frontline, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Montauk Renewables | 1 | 3 | 0 | 1 | 2.20 |
| Frontline | 2 | 5 | 4 | 0 | 2.18 |
Montauk Renewables currently has a consensus target price of $1.80, indicating a potential downside of 15.09%. Frontline has a consensus target price of $45.37, indicating a potential downside of 11.58%. Given Frontline’s higher probable upside, analysts plainly believe Frontline is more favorable than Montauk Renewables.
Summary
Frontline beats Montauk Renewables on 10 of the 15 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 Frontline
Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.
Receive News & Ratings for Montauk Renewables Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Montauk Renewables and related companies with MarketBeat.com's FREE daily email newsletter.
