Comparing A2A (OTCMKTS:AEMMY) & Montauk Renewables (NASDAQ:MNTK)

Montauk Renewables (NASDAQ:MNTK) and A2A (OTCMKTS:AEMMY) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

16.4% of Montauk Renewables shares are owned by institutional investors. 54.6% 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Montauk Renewables and A2A, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	0	1	1	0	2.50
A2A	0	0	0	0	N/A

Montauk Renewables presently has a consensus target price of $7.00, suggesting a potential upside of 51.52%. Given Montauk Renewables’ higher probable upside, equities analysts plainly believe Montauk Renewables is more favorable than A2A.

Earnings and Valuation

This table compares Montauk Renewables and A2A’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montauk Renewables	$184.62 million	3.60	$14.95 million	$0.15	30.80
A2A	N/A	N/A	N/A	N/A	N/A

Montauk Renewables has higher revenue and earnings than A2A.

Profitability

This table compares Montauk Renewables and A2A’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%
A2A	N/A	N/A	N/A

Summary

Montauk Renewables beats A2A on 8 of the 8 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 A2A

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.