Critical Analysis: NET Power (NPWR) & Its Peers

NET Power (NYSE:NPWR) is one of 21 publicly-traded companies in the “Electrical industrial apparatus” industry, but how does it compare to its rivals? We will compare NET Power to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NET Power and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NET Power	0	1	1	1	3.00
NET Power Competitors	96	606	847	36	2.52

NET Power presently has a consensus target price of $4.50, indicating a potential upside of 127.85%. As a group, “Electrical industrial apparatus” companies have a potential upside of 26.95%. Given NET Power’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NET Power is more favorable than its rivals.

Insider and Institutional Ownership

53.6% of NET Power shares are owned by institutional investors. Comparatively, 53.1% of shares of all “Electrical industrial apparatus” companies are owned by institutional investors. 2.7% of NET Power shares are owned by insiders. Comparatively, 10.7% of shares of all “Electrical industrial apparatus” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

NET Power has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, NET Power’s rivals have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Profitability

This table compares NET Power and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NET Power	N/A	6.23%	1.91%
NET Power Competitors	-211.08%	-93.75%	-17.25%

Earnings and Valuation

This table compares NET Power and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NET Power	$250,000.00	-$77.23 million	-2.95
NET Power Competitors	$534.72 million	-$136.01 million	-0.84

NET Power’s rivals have higher revenue, but lower earnings than NET Power. NET Power is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

NET Power beats its rivals on 8 of the 13 factors compared.

NET Power Company Profile

NET Power Inc. operates as a clean energy technology company. The company invents, develops, and licenses clean power generation technology. NET Power Inc. was founded in 2010 and is headquartered in Durham, North Carolina.