Reviewing Enovix (NASDAQ:ENVX) and Montauk Renewables (NASDAQ:MNTK)

Montauk Renewables (NASDAQ:MNTK) and Enovix (NASDAQ:ENVX) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Montauk Renewables and Enovix”s 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	1.11	$1.75 million	$0.02	68.50
Enovix	$31.82 million	46.14	-$156.74 million	($0.77)	-8.77

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

Volatility and Risk

Montauk Renewables has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Enovix has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500.

Institutional & Insider Ownership

16.4% of Montauk Renewables shares are held by institutional investors. Comparatively, 50.9% of Enovix shares are held by institutional investors. 54.3% of Montauk Renewables shares are held by company insiders. Comparatively, 12.7% of Enovix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montauk Renewables	1	3	0	1	2.20
Enovix	1	3	6	0	2.50

Montauk Renewables presently has a consensus price target of $1.80, suggesting a potential upside of 31.39%. Enovix has a consensus price target of $14.05, suggesting a potential upside of 108.08%. Given Enovix’s stronger consensus rating and higher possible upside, analysts plainly believe Enovix is more favorable than Montauk Renewables.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montauk Renewables	0.15%	0.10%	0.07%
Enovix	-492.57%	-64.29%	-23.65%

Summary

Montauk Renewables beats Enovix on 9 of the 15 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 Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.