Financial Review: NuScale Power (NYSE:SMR) versus nVent Electric (NYSE:NVT)

nVent Electric (NYSE:NVT) and NuScale Power (NYSE:SMR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Profitability

This table compares nVent Electric and NuScale Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nVent Electric	12.38%	18.85%	10.30%
NuScale Power	-3,888.70%	-35.59%	-30.27%

Earnings and Valuation

This table compares nVent Electric and NuScale Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nVent Electric	$4.83 billion	4.77	$710.20 million	$3.66	38.94
NuScale Power	$31.48 million	80.74	-$355.79 million	($2.92)	-2.03

nVent Electric has higher revenue and earnings than NuScale Power. NuScale Power is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.1% of nVent Electric shares are held by institutional investors. Comparatively, 78.4% of NuScale Power shares are held by institutional investors. 1.7% of nVent Electric shares are held by insiders. Comparatively, 1.3% of NuScale Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for nVent Electric and NuScale Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	2	15	2	3.00
NuScale Power	4	8	4	1	2.12

nVent Electric currently has a consensus price target of $200.81, indicating a potential upside of 40.90%. NuScale Power has a consensus price target of $12.96, indicating a potential upside of 119.13%. Given NuScale Power’s higher probable upside, analysts clearly believe NuScale Power is more favorable than nVent Electric.

Volatility and Risk

nVent Electric has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, NuScale Power has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Summary

nVent Electric beats NuScale Power on 12 of the 15 factors compared between the two stocks.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.

About NuScale Power

NuScale Power Corporation engages in the development and sale of modular light water reactor nuclear power plants to supply energy for electrical generation, district heating, desalination, hydrogen production, and other process heat applications. It offers NuScale Power Module (NPM), a water reactor that can generate 77 megawatts of electricity (MWe); and VOYGR power plant designs for three facility sizes that are capable of housing from one to four and six or twelve NPMs. The company was founded in 2007 and is headquartered in Portland, Oregon. NuScale Power Corporation operates as a subsidiary of Fluor Enterprises, Inc.