Financial Analysis: Tecogen (OTCMKTS:TGEN) & Montana Technologies (NASDAQ:AIRJ)

Montana Technologies (NASDAQ:AIRJ) and Tecogen (OTCMKTS:TGEN) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Montana Technologies and Tecogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Montana Technologies	N/A	-7.23%	-3.82%
Tecogen	-16.24%	-27.41%	-14.62%

Analyst Recommendations

This is a summary of current recommendations for Montana Technologies and Tecogen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montana Technologies	0	0	0	0	N/A
Tecogen	0	1	1	0	2.50

Tecogen has a consensus price target of $4.50, suggesting a potential upside of 556.93%. Given Tecogen’s higher probable upside, analysts clearly believe Tecogen is more favorable than Montana Technologies.

Institutional & Insider Ownership

63.7% of Montana Technologies shares are held by institutional investors. 40.4% of Montana Technologies shares are held by insiders. Comparatively, 12.1% of Tecogen shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Montana Technologies has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, Tecogen has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Montana Technologies and Tecogen’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montana Technologies	N/A	N/A	$1.24 million	N/A	N/A
Tecogen	$25.14 million	N/A	-$4.60 million	($0.16)	-4.28

Montana Technologies has higher earnings, but lower revenue than Tecogen.

Summary

Montana Technologies beats Tecogen on 6 of the 10 factors compared between the two stocks.

About Montana Technologies

Montana Technologies Corporation operates as an atmospheric renewable energy and water harvesting technology company. It provides energy and dehumidification, evaporative cooling, and atmospheric water generation through its AirJoule technology. The company is headquartered in Ronan, Montana.

About Tecogen

Tecogen Inc., together with its subsidiaries, designs, manufactures, markets, and maintains ultra-clean cogeneration products for multi-family residential, commercial, recreational, and industrial use primarily in the United States. It operates through three segments: Products, Services, and Energy Production. The Products segment designs, manufactures, and sells industrial and commercial cogeneration systems. The Services segment provides operation and maintenance services for products under long term service contracts. The Energy Production segment sells energy in the form of electricity, heat, hot water, and cooling to customers under long-term energy sales agreements. The company also offers natural gas-powered cogeneration systems for water and space heating, and/or air conditioning. Its product portfolio includes InVerde e+ and TecoPower cogeneration units for the supply electricity and hot water; Tecochill, an air-conditioning and refrigeration chillers, and hybrid-drive air-cooled and gas engine-driven chillers to produce chilled water and hot water; Tecofrost, a gas engine-driven refrigeration compressors to circulate refrigerant and provide hot water as a byproduct; and Ultera, an emissions control technology. In addition, the company provides long-term maintenance contracts, parts sales, and turnkey installation for products through a network of field service centers. It sells its products to healthcare, housing and hospitality, ice rink and low temperature, recreation facilities, industrial, indoor growing, and breweries markets through in-house marketing, as well as independent sales agents and representatives. Tecogen Inc. was incorporated in 2000 and is headquartered in Waltham, Massachusetts.