Brookfield Renewable (NYSE:BEPC) and Montauk Renewables (NASDAQ:MNTK) Financial Contrast

Brookfield Renewable (NYSE:BEPC) and Montauk Renewables (NASDAQ:MNTK) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Valuation and Earnings

This table compares Brookfield Renewable and Montauk Renewables”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$5.88 billion	0.98	$236.00 million	($0.89)	-44.63
Montauk Renewables	$175.74 million	1.34	$9.73 million	($0.06)	-27.50

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

Volatility and Risk

Brookfield Renewable has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

75.1% of Brookfield Renewable shares are owned by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are owned by institutional investors. 54.7% 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 stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-34.58%	-12.74%	-3.20%
Montauk Renewables	-5.72%	-3.57%	-2.50%

Analyst Ratings

This is a summary of recent ratings and price targets for Brookfield Renewable and Montauk Renewables, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	1	1	3	0	2.40
Montauk Renewables	1	5	0	0	1.83

Brookfield Renewable presently has a consensus price target of $39.75, indicating a potential upside of 0.07%. Montauk Renewables has a consensus price target of $3.33, indicating a potential upside of 102.02%. Given Montauk Renewables’ higher probable upside, analysts clearly believe Montauk Renewables is more favorable than Brookfield Renewable.

Summary

Montauk Renewables beats Brookfield Renewable on 8 of the 14 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

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.