Terrestrial Energy (NASDAQ:IMSR) vs. Orion Energy Systems (NASDAQ:OESX) Head to Head Analysis

Orion Energy Systems (NASDAQ:OESX) and Terrestrial Energy (NASDAQ:IMSR) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Volatility & Risk

Orion Energy Systems has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Terrestrial Energy has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.

Profitability

This table compares Orion Energy Systems and Terrestrial Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Energy Systems	0.04%	11.66%	3.40%
Terrestrial Energy	N/A	-16.65%	-12.52%

Institutional and Insider Ownership

52.6% of Orion Energy Systems shares are owned by institutional investors. 5.3% of Orion Energy Systems shares are owned by insiders. Comparatively, 28.6% of Terrestrial Energy shares 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.

Earnings and Valuation

This table compares Orion Energy Systems and Terrestrial Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Energy Systems	$86.31 million	1.44	-$3.16 million	($0.05)	-608.80
Terrestrial Energy	$250,000.00	1,601.66	-$28.02 million	($0.19)	-19.89

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Orion Energy Systems and Terrestrial Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Energy Systems	1	1	2	0	2.25
Terrestrial Energy	1	1	3	0	2.40

Orion Energy Systems currently has a consensus price target of $36.50, suggesting a potential upside of 19.91%. Terrestrial Energy has a consensus price target of $14.00, suggesting a potential upside of 270.37%. Given Terrestrial Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Terrestrial Energy is more favorable than Orion Energy Systems.

About Orion Energy Systems

Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.

About Terrestrial Energy

Terrestrial Energy Inc. produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina.