Critical Contrast: AusNet Services (OTCMKTS:SAUNF) & Montauk Renewables (NASDAQ:MNTK)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AusNet Services	N/A	N/A	N/A	N/A	N/A
Montauk Renewables	$184.62 million	3.48	$14.95 million	$0.15	29.80

Montauk Renewables has higher revenue and earnings than AusNet Services.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AusNet Services and Montauk Renewables, as reported by MarketBeat.com.

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

Montauk Renewables has a consensus target price of $7.00, indicating a potential upside of 56.60%. Given Montauk Renewables’ higher probable upside, analysts plainly believe Montauk Renewables is more favorable than AusNet Services.

Profitability

This table compares AusNet Services and Montauk Renewables’ net margins, return on equity and return on assets.

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

Institutional & Insider Ownership

16.4% of Montauk Renewables shares are held by institutional investors. 54.6% of Montauk Renewables shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Montauk Renewables beats AusNet Services on 8 of the 8 factors compared between the two stocks.

About AusNet Services

AusNet Services Ltd. engages in the production and distribution of electricity and gas. It operates through the following segments: Electricity Distribution, Gas Distribution, Electricity Transmission, and Growth and Future Networks. The Electricity Distribution segment carries electricity from the high voltage transmission network to end users. The Gas Distribution segment handles the natural gas to commercial and residential end users. The Electricity Transmission segment owns and manages the vast majority of the electricity transmission network in Victoria. The Growth and Future Networks segment provides contracted infrastructure asset and energy services, as well as a range of asset and utility services to support the management of electricity, gas, and water networks. The company was founded in June 2005 and is headquartered in Southbank, Australia.

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.