Critical Analysis: Vast Renewables (NASDAQ:VSTE) and Babcock & Wilcox Enterprises (NYSE:BW)

Babcock & Wilcox Enterprises (NYSE:BW) and Vast Renewables (NASDAQ:VSTE) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

83.2% of Babcock & Wilcox Enterprises shares are owned by institutional investors. Comparatively, 90.9% of Vast Renewables shares are owned by institutional investors. 4.3% of Babcock & Wilcox Enterprises shares are owned by company insiders. Comparatively, 41.2% of Vast Renewables shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Babcock & Wilcox Enterprises has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Vast Renewables has a beta of -0.4, suggesting that its stock price is 140% less volatile than the S&P 500.

Profitability

This table compares Babcock & Wilcox Enterprises and Vast Renewables’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Babcock & Wilcox Enterprises	-18.85%	N/A	-5.77%
Vast Renewables	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Babcock & Wilcox Enterprises and Vast Renewables, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Babcock & Wilcox Enterprises	0	1	2	0	2.67
Vast Renewables	0	0	0	0	N/A

Babcock & Wilcox Enterprises currently has a consensus price target of $4.50, indicating a potential upside of 106.42%. Given Babcock & Wilcox Enterprises’ higher probable upside, analysts plainly believe Babcock & Wilcox Enterprises is more favorable than Vast Renewables.

Valuation & Earnings

This table compares Babcock & Wilcox Enterprises and Vast Renewables”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Babcock & Wilcox Enterprises	$907.78 million	0.22	-$197.21 million	($2.42)	-0.90
Vast Renewables	$342,000.00	49.96	-$293.45 million	N/A	N/A

Babcock & Wilcox Enterprises has higher revenue and earnings than Vast Renewables.

About Babcock & Wilcox Enterprises

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and emissions control solutions to industrial, electrical utility, municipal, and other customers worldwide. The company operates through three segments: Babcock & Wilcox Renewable; Babcock & Wilcox Environmental; and Babcock & Wilcox Thermal. The Babcock & Wilcox Renewable segment offers technologies divert the waste from landfills for power generation and replacing fossil fuels and recovering metals and reducing emissions. It offers BrightLoop, a hydrogen generation technology that generates hydrogen from a range of fuels, including solid fuels, such as biomass and coal. This segment also provides technologies for power and heat generation comprising waste-to-energy; OxyBright, an oxygen-fired biomass-to-energy technology; and black liquor systems for the pulp and paper industry. The Babcock & Wilcox Environmental segment offers a range of emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications. This segment provides systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control under the SolveBright, OxyBright, BrightLoop, and BrightGen names. The Babcock & Wilcox Thermal segment offers aftermarket parts, construction, maintenance, engineered upgrades, and field services for its installed bases, as well as the installed base of other OEMs for power generation, oil and gas, petrochemical, food and beverage, metals and mining, and others. This segment also provides steam generation systems, including package boilers, watertube and firetube waste heat boilers, and other boilers to medium and heavy industrial customers. Babcock & Wilcox Enterprises, Inc. was founded in 1867 and is based in Akron, Ohio.

About Vast Renewables

Nabors Energy Transition Corp. is a blank check company. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or related business combination with one or more businesses. Nabors Energy Transition Corp. is based in Houston, Texas.