Critical Survey: Terrestrial Energy (IMSR) & Its Peers

Terrestrial Energy (NASDAQ:IMSR) is one of 216 publicly-traded companies in the “Electrical Equipment” industry, but how does it compare to its competitors? We will compare Terrestrial Energy to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Profitability

This table compares Terrestrial Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terrestrial Energy	N/A	-16.65%	-12.52%
Terrestrial Energy Competitors	-354.45%	-44.26%	-7.93%

Volatility & Risk

Terrestrial Energy has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500. Comparatively, Terrestrial Energy’s competitors have a beta of -20.43, indicating that their average share price is 2,143% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Terrestrial Energy and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	2	4	1	2.62
Terrestrial Energy Competitors	2285	5161	7213	437	2.38

Terrestrial Energy presently has a consensus price target of $11.83, suggesting a potential upside of 337.46%. As a group, “Electrical Equipment” companies have a potential upside of 52.98%. Given Terrestrial Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Terrestrial Energy is more favorable than its competitors.

Earnings & Valuation

This table compares Terrestrial Energy and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terrestrial Energy	N/A	-$28.02 million	-14.24
Terrestrial Energy Competitors	$2.44 billion	$142.48 million	20.50

Terrestrial Energy’s competitors have higher revenue and earnings than Terrestrial Energy. Terrestrial Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

37.4% of shares of all “Electrical Equipment” companies are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by company insiders. Comparatively, 14.9% of shares of all “Electrical Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Terrestrial Energy beats its competitors on 8 of the 13 factors compared.

Terrestrial Energy Company Profile

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.