Critical Analysis: NET Power (NPWR) vs. Its Peers

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

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%

Risk & Volatility

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

Valuation and Earnings

This table compares NET Power and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NET Power	$250,000.00	-$77.23 million	-3.73
NET Power Competitors	$534.72 million	-$136.01 million	-2.18

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.

Institutional and Insider Ownership

53.6% of NET Power shares are held by institutional investors. Comparatively, 53.1% of shares of all “Electrical industrial apparatus” companies are held by institutional investors. 2.7% of NET Power shares are held by company insiders. Comparatively, 10.7% of shares of all “Electrical industrial apparatus” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for NET Power and its rivals, 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	839	35	2.52

NET Power currently has a consensus price target of $4.50, indicating a potential upside of 80.00%. As a group, “Electrical industrial apparatus” companies have a potential upside of 13.63%. Given NET Power’s stronger consensus rating and higher probable upside, equities analysts clearly believe NET Power is more favorable than its rivals.

Summary

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

About NET Power

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.