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MNTK vs. FCEL: Which of These 2 Clean Energy Stocks Is a Buy?
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Key Takeaways
MNTK gained 70.5% in three months, while its rival fell 20.2%, highlighting a sharp performance gap.
FuelCell Energy's 10-GW pipeline offers growth potential, but losses and backlog conversion risks remain.
MNTK trades at a lower price-to-book multiple and boasts stronger near-term earnings growth prospects.
Montauk Renewables (MNTK - Free Report) and FuelCell Energy (FCEL - Free Report) both offer exposure to the clean-energy transition, but their business models are quite different. Montauk focuses on recovering biogas and converting it into renewable natural gas (“RNG”) or renewable electricity, while FuelCell Energy develops fuel-cell platforms for distributed power, data centers, hydrogen and carbon capture. Their growth opportunities are attractive, but their execution and profitability profiles differ.
The Case for MNTK Stock
Montauk’s core strength is its established position in renewable fuels. The company operates landfill-methane projects and converts captured biogas into renewable natural gas and electricity. It also earns additional value from government-backed environmental credits tied to renewable fuel and power production, including Renewable Identification Numbers (RINs) and Renewable Energy Credits (RECs).
The Turkey, NC, project is central to the growth story. Montauk began generating power for sale from the facility in July 2026. By the end of August, it had secured long-term agreements with more than 80 farming locations, giving it access to over 415,000 hog spaces targeted for the first phase. The $200-million project converts swine waste into electricity, with that output expected to generate renewable-energy credits that can provide an additional source of revenue.
GreenWave also adds another way to create value from renewable natural gas. The joint venture connects third-party RNG volumes with transportation outlets that qualify for federal renewable-fuel credits, allowing those credits to be generated and distributed to its partners. Meanwhile, operating improvements at facilities such as McCarty and Apex have supported production, while management continues to advance other development opportunities.
Still, MNTK carries notable risks. A meaningful portion of profitability depends on the market value of renewable-fuel credits, particularly RINs, so changes in government policy or credit prices can affect results. Project development can also face construction delays, feedstock variability and higher costs. The company also had $155 million outstanding under its senior credit facility at June 30, 2026, while major projects require continued capital spending. These factors make disciplined execution important as Montauk expands.
The Case for FCEL Stock
FuelCell Energy offers a broader technology platform and is increasingly targeting power demand from AI and data centers. Its commercial pipeline reached roughly 10 GW, and the company had $1.3 billion of committed backlog plus $2.4 billion of awarded capacity backlog as of July 31, 2026. That creates long-term opportunity if customer commitments convert into firm contracts and revenues.
The Fit Energy agreement is a major growth driver. It covers up to 380 MW across four potential phases, with an initial 30-MW order already committed. FCEL also signed a capacity reservation agreement for a planned 75-MW data-center project in Texas. To support expected demand, the company is working toward a 100-MW annualized production rate in October 2026 and plans to expand its Torrington facility to 500 MW by June 2028.
FuelCell Energy is also developing opportunities beyond data centers. Its collaboration with Siemens is aimed at faster deployment of projects above 100 MW, while its carbon-capture work with ExxonMobil reached an industrial-scale demonstration milestone in Rotterdam. Liquidity also helps, with about $737 million in total cash and restricted cash at the end of July.
However, execution risk remains high. Revenue declined in the latest reported quarter, gross loss widened, and FCEL remains unprofitable. Management is targeting positive adjusted EBITDA only in the fourth quarter of fiscal 2027, and that goal depends on backlog conversion, customer schedules and cost reductions. Importantly, awarded capacity backlog is not the same as contracted backlog and may not fully convert into revenue. Recent equity issuance also increases dilution risk.
Price Performance
Montauk Renewables has clearly led the recent market race. The stock has gained 70.5% over the past three months, while FCEL is down 20.2%.
Image Source: Zacks Investment Research
Valuation
On a trailing 12-month price-to-book basis, FuelCell Energy trades at 1.49X compared with MNTK’s 1.43X. Thus, Montauk Renewables is slightly cheaper on this measure despite its much stronger recent share-price performance, giving it an edge in this comparison.
Image Source: Zacks Investment Research
Earnings Estimates
The Zacks Consensus Estimate for MNTK’s 2026 earnings is 12 cents per share, implying a 1,100% jump from 2025.
Image Source: Zacks Investment Research
For FCEL, the fiscal 2026 consensus calls for a loss of $1.93 per share, though that represents a 56.2% improvement. Montauk Renewables therefore offers the stronger near-term earnings profile.
Image Source: Zacks Investment Research
Which Stock Stands Out Now?
Both companies have credible clean-energy growth opportunities, but MNTK currently combines stronger earnings momentum, better recent stock performance and a slightly lower price-to-book multiple. FCEL’s data-center pipeline and manufacturing expansion offer meaningful upside, yet profitability remains further away, and execution risk is higher. Montauk Renewables carries a Zacks Rank #1 (Strong Buy) and is therefore currently better placed than FuelCell Energy, which carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
MNTK vs. FCEL: Which of These 2 Clean Energy Stocks Is a Buy?
Key Takeaways
Montauk Renewables (MNTK - Free Report) and FuelCell Energy (FCEL - Free Report) both offer exposure to the clean-energy transition, but their business models are quite different. Montauk focuses on recovering biogas and converting it into renewable natural gas (“RNG”) or renewable electricity, while FuelCell Energy develops fuel-cell platforms for distributed power, data centers, hydrogen and carbon capture. Their growth opportunities are attractive, but their execution and profitability profiles differ.
The Case for MNTK Stock
Montauk’s core strength is its established position in renewable fuels. The company operates landfill-methane projects and converts captured biogas into renewable natural gas and electricity. It also earns additional value from government-backed environmental credits tied to renewable fuel and power production, including Renewable Identification Numbers (RINs) and Renewable Energy Credits (RECs).
The Turkey, NC, project is central to the growth story. Montauk began generating power for sale from the facility in July 2026. By the end of August, it had secured long-term agreements with more than 80 farming locations, giving it access to over 415,000 hog spaces targeted for the first phase. The $200-million project converts swine waste into electricity, with that output expected to generate renewable-energy credits that can provide an additional source of revenue.
GreenWave also adds another way to create value from renewable natural gas. The joint venture connects third-party RNG volumes with transportation outlets that qualify for federal renewable-fuel credits, allowing those credits to be generated and distributed to its partners. Meanwhile, operating improvements at facilities such as McCarty and Apex have supported production, while management continues to advance other development opportunities.
Still, MNTK carries notable risks. A meaningful portion of profitability depends on the market value of renewable-fuel credits, particularly RINs, so changes in government policy or credit prices can affect results. Project development can also face construction delays, feedstock variability and higher costs. The company also had $155 million outstanding under its senior credit facility at June 30, 2026, while major projects require continued capital spending. These factors make disciplined execution important as Montauk expands.
The Case for FCEL Stock
FuelCell Energy offers a broader technology platform and is increasingly targeting power demand from AI and data centers. Its commercial pipeline reached roughly 10 GW, and the company had $1.3 billion of committed backlog plus $2.4 billion of awarded capacity backlog as of July 31, 2026. That creates long-term opportunity if customer commitments convert into firm contracts and revenues.
The Fit Energy agreement is a major growth driver. It covers up to 380 MW across four potential phases, with an initial 30-MW order already committed. FCEL also signed a capacity reservation agreement for a planned 75-MW data-center project in Texas. To support expected demand, the company is working toward a 100-MW annualized production rate in October 2026 and plans to expand its Torrington facility to 500 MW by June 2028.
FuelCell Energy is also developing opportunities beyond data centers. Its collaboration with Siemens is aimed at faster deployment of projects above 100 MW, while its carbon-capture work with ExxonMobil reached an industrial-scale demonstration milestone in Rotterdam. Liquidity also helps, with about $737 million in total cash and restricted cash at the end of July.
However, execution risk remains high. Revenue declined in the latest reported quarter, gross loss widened, and FCEL remains unprofitable. Management is targeting positive adjusted EBITDA only in the fourth quarter of fiscal 2027, and that goal depends on backlog conversion, customer schedules and cost reductions. Importantly, awarded capacity backlog is not the same as contracted backlog and may not fully convert into revenue. Recent equity issuance also increases dilution risk.
Price Performance
Montauk Renewables has clearly led the recent market race. The stock has gained 70.5% over the past three months, while FCEL is down 20.2%.
Valuation
On a trailing 12-month price-to-book basis, FuelCell Energy trades at 1.49X compared with MNTK’s 1.43X. Thus, Montauk Renewables is slightly cheaper on this measure despite its much stronger recent share-price performance, giving it an edge in this comparison.
Earnings Estimates
The Zacks Consensus Estimate for MNTK’s 2026 earnings is 12 cents per share, implying a 1,100% jump from 2025.
For FCEL, the fiscal 2026 consensus calls for a loss of $1.93 per share, though that represents a 56.2% improvement. Montauk Renewables therefore offers the stronger near-term earnings profile.
Which Stock Stands Out Now?
Both companies have credible clean-energy growth opportunities, but MNTK currently combines stronger earnings momentum, better recent stock performance and a slightly lower price-to-book multiple. FCEL’s data-center pipeline and manufacturing expansion offer meaningful upside, yet profitability remains further away, and execution risk is higher. Montauk Renewables carries a Zacks Rank #1 (Strong Buy) and is therefore currently better placed than FuelCell Energy, which carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.