Head to Head Review: NET Power (NPWR) and The Competition

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

Analyst Recommendations

This is a summary of recent ratings and target prices for NET Power and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NET Power	0	1	1	1	3.00
NET Power Competitors	92	598	840	35	2.52

NET Power presently has a consensus price target of $4.50, indicating a potential upside of 91.08%. As a group, “Electrical industrial apparatus” companies have a potential upside of 20.76%. Given NET Power’s stronger consensus rating and higher possible upside, equities analysts clearly believe NET Power is more favorable than its peers.

Volatility & Risk

NET Power has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, NET Power’s peers have a beta of 1.46, indicating that their average share price is 46% more volatile than the S&P 500.

Valuation and Earnings

This table compares NET Power and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NET Power	$250,000.00	-$77.23 million	-3.51
NET Power Competitors	$534.72 million	-$136.01 million	-1.74

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

Profitability

This table compares NET Power and its peers’ 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%

Institutional & Insider 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 company insiders. Comparatively, 10.7% of shares of all “Electrical industrial apparatus” 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

NET Power beats its peers 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.