Terrestrial Energy (IMSR) & Its Peers Critical Review

Terrestrial Energy (NASDAQ:IMSR) is one of 218 public companies in the “Electrical Equipment” industry, but how does it contrast to its rivals? We will compare Terrestrial Energy to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.

Profitability

This table compares Terrestrial Energy and its rivals’ 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	-218.76%	-85.01%	-8.81%

Volatility & Risk

Terrestrial Energy has a beta of 2.39, suggesting that its share price is 139% more volatile than the S&P 500. Comparatively, Terrestrial Energy’s rivals have a beta of -19.64, suggesting that their average share price is 2,064% less volatile than the S&P 500.

Earnings & Valuation

This table compares Terrestrial Energy and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terrestrial Energy	$250,000.00	-$28.02 million	-26.84
Terrestrial Energy Competitors	$2.40 billion	$142.96 million	20.68

Terrestrial Energy’s rivals have higher revenue and earnings than Terrestrial Energy. Terrestrial Energy 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.

Analyst Ratings

This is a breakdown of recent recommendations for Terrestrial Energy and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	1	2	0	2.25
Terrestrial Energy Competitors	2154	4987	6929	417	2.39

Terrestrial Energy presently has a consensus price target of $13.50, suggesting a potential upside of 164.71%. As a group, “Electrical Equipment” companies have a potential upside of 25.94%. Given Terrestrial Energy’s higher possible upside, analysts clearly believe Terrestrial Energy is more favorable than its rivals.

Insider and Institutional Ownership

37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by company insiders. Comparatively, 15.3% 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 is poised for long-term growth.

Summary

Terrestrial Energy rivals beat Terrestrial Energy on 7 of the 13 factors compared.

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.