Reviewing Montauk Renewables (NASDAQ:MNTK) & Iberdrola (OTCMKTS:IBDSF)

Montauk Renewables (NASDAQ:MNTK) and Iberdrola (OTCMKTS:IBDSF) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Valuation and Earnings

This table compares Montauk Renewables and Iberdrola’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$184.62 million	3.42	$14.95 million	$0.15	29.27
Iberdrola	N/A	N/A	N/A	$0.33	41.93

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Montauk Renewables and Iberdrola, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	0	1	1	0	2.50
Iberdrola	0	0	0	0	N/A

Montauk Renewables currently has a consensus target price of $7.00, indicating a potential upside of 59.45%. Given Montauk Renewables’ higher possible upside, research analysts plainly believe Montauk Renewables is more favorable than Iberdrola.

Insider and Institutional Ownership

16.4% of Montauk Renewables shares are owned by institutional investors. Comparatively, 16.5% of Iberdrola shares are owned by institutional investors. 54.6% of Montauk Renewables shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	10.58%	8.44%	5.94%
Iberdrola	N/A	N/A	N/A

Summary

Montauk Renewables beats Iberdrola on 7 of the 10 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 Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.