Reviewing Ormat Technologies (NYSE:ORA) & Montauk Renewables (NASDAQ:MNTK)

Ormat Technologies (NYSE:ORAGet Free Report) and Montauk Renewables (NASDAQ:MNTKGet Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

Ormat Technologies has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Montauk Renewables has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ormat Technologies and Montauk Renewables, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ormat Technologies 0 4 8 0 2.67
Montauk Renewables 1 4 0 0 1.80

Ormat Technologies presently has a consensus target price of $133.18, indicating a potential downside of 8.27%. Montauk Renewables has a consensus target price of $1.80, indicating a potential upside of 11.11%. Given Montauk Renewables’ higher possible upside, analysts plainly believe Montauk Renewables is more favorable than Ormat Technologies.

Earnings & Valuation

This table compares Ormat Technologies and Montauk Renewables”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ormat Technologies $989.54 million 9.02 $123.90 million $2.06 70.48
Montauk Renewables $176.38 million 1.31 $1.75 million $0.02 81.00

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

Profitability

This table compares Ormat Technologies and Montauk Renewables’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ormat Technologies 10.97% 6.61% 2.80%
Montauk Renewables 0.40% 0.28% 0.17%

Insider and Institutional Ownership

95.5% of Ormat Technologies shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 0.6% of Ormat Technologies shares are held by company insiders. Comparatively, 54.3% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Ormat Technologies beats Montauk Renewables on 11 of the 14 factors compared between the two stocks.

About Ormat Technologies

(Get Free Report)

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, and internationally. It operates in three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. This segment serves contractors; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Energy Storage segment offers battery energy storage systems and related services. Ormat Technologies, Inc. was founded in 1965 and is headquartered in Reno, Nevada.

About Montauk Renewables

(Get Free Report)

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.

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