AuraSource (OTCMKTS:ARAO – Get Free Report) and Montauk Renewables (NASDAQ:MNTK – Get Free Report) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
22.2% of AuraSource shares are held by institutional investors. Comparatively, 16.4% of Montauk Renewables shares are held by institutional investors. 4.7% of AuraSource shares are held by company insiders. Comparatively, 54.6% of Montauk Renewables shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares AuraSource and Montauk Renewables’ top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AuraSource | N/A | N/A | N/A | ($0.05) | -0.81 |
Montauk Renewables | $184.62 million | 3.48 | $14.95 million | $0.15 | 29.80 |
Analyst Ratings
This is a breakdown of current recommendations and price targets for AuraSource and Montauk Renewables, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AuraSource | 0 | 0 | 0 | 0 | N/A |
Montauk Renewables | 0 | 1 | 1 | 0 | 2.50 |
Montauk Renewables has a consensus target price of $7.00, suggesting a potential upside of 56.60%. Given Montauk Renewables’ higher probable upside, analysts clearly believe Montauk Renewables is more favorable than AuraSource.
Profitability
This table compares AuraSource and Montauk Renewables’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AuraSource | N/A | N/A | N/A |
Montauk Renewables | 10.58% | 8.44% | 5.94% |
Summary
Montauk Renewables beats AuraSource on 9 of the 10 factors compared between the two stocks.
About AuraSource
AuraSource, Inc. focuses on sales of electric automobiles. It operates through two segments, AuraMetal and AuraMoto. The AuraMetal segment focuses on the development and production of environmentally friendly and beneficiation process for complex ore, tailings, and slimes materials as industrial application solutions. The AuraMoto segment focuses on sourcing various vendors and customers in the automotive industry. AuraSource, Inc. is based in Tempe, Arizona.
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.
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