Montauk Renewables (NASDAQ:MNTK) versus Dynagas LNG Partners (NYSE:DLNG) Critical Survey

Montauk Renewables (NASDAQ:MNTK) and Dynagas LNG Partners (NYSE:DLNG) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Earnings & Valuation

This table compares Montauk Renewables and Dynagas LNG Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$176.38 million	1.80	$1.75 million	$0.06	37.17
Dynagas LNG Partners	$156.62 million	0.86	$61.60 million	$1.52	2.44

Dynagas LNG Partners has lower revenue, but higher earnings than Montauk Renewables. Dynagas LNG Partners 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 current ratings for Montauk Renewables and Dynagas LNG Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	3	0	1	2.20
Dynagas LNG Partners	0	1	0	0	2.00

Montauk Renewables presently has a consensus price target of $1.80, indicating a potential downside of 19.28%. Given Montauk Renewables’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Montauk Renewables is more favorable than Dynagas LNG Partners.

Risk and Volatility

Montauk Renewables has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Montauk Renewables and Dynagas LNG Partners’ 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%
Dynagas LNG Partners	41.60%	13.59%	6.68%

Insider and Institutional Ownership

16.4% of Montauk Renewables shares are held by institutional investors. 54.3% of Montauk Renewables shares are held by company 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.

Summary

Montauk Renewables beats Dynagas LNG Partners on 8 of the 13 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 Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.