Financial Analysis: Nano Nuclear Energy (NASDAQ:NNE) and Nextpower (NASDAQ:NXT)

Nextpower (NASDAQ:NXT) and Nano Nuclear Energy (NASDAQ:NNE) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nextpower and Nano Nuclear Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	3	22	2	2.96
Nano Nuclear Energy	1	2	4	1	2.62

Nextpower currently has a consensus target price of $146.12, indicating a potential upside of 41.51%. Nano Nuclear Energy has a consensus target price of $40.75, indicating a potential upside of 116.18%. Given Nano Nuclear Energy’s higher possible upside, analysts clearly believe Nano Nuclear Energy is more favorable than Nextpower.

Insider & Institutional Ownership

67.4% of Nextpower shares are held by institutional investors. 0.8% of Nextpower shares are held by insiders. Comparatively, 18.6% of Nano Nuclear Energy shares are held by 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.

Risk & Volatility

Nextpower has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, Nano Nuclear Energy has a beta of 5.42, suggesting that its share price is 442% more volatile than the S&P 500.

Profitability

This table compares Nextpower and Nano Nuclear Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextpower	16.36%	26.29%	15.02%
Nano Nuclear Energy	N/A	-7.62%	-7.51%

Earnings & Valuation

This table compares Nextpower and Nano Nuclear Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$3.56 billion	4.36	$585.88 million	$3.86	26.75
Nano Nuclear Energy	N/A	N/A	-$40.07 million	($0.69)	-27.32

Nextpower has higher revenue and earnings than Nano Nuclear Energy. Nano Nuclear Energy is trading at a lower price-to-earnings ratio than Nextpower, indicating that it is currently the more affordable of the two stocks.

Summary

Nextpower beats Nano Nuclear Energy on 11 of the 14 factors compared between the two stocks.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.

About Nano Nuclear Energy

NANO Nuclear Energy, Inc. is a microreactor and nuclear technology company, which provides supply energy services. Its products in technical development are ZEUS, a solid core battery reactor, and ODIN, a low-pressure coolant reactor. The company is founded by Jiang Yu in February, 2022 and is headquartered in New York, NY.