Financial Analysis: Enersys (NYSE:ENS) and Nextpower (NASDAQ:NXT)

Enersys (NYSE:ENS) and Nextpower (NASDAQ:NXT) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enersys and Nextpower, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enersys	0	1	5	0	2.83
Nextpower	0	4	24	1	2.90

Enersys presently has a consensus target price of $265.00, suggesting a potential upside of 80.28%. Nextpower has a consensus target price of $135.19, suggesting a potential upside of 28.87%. Given Enersys’ higher possible upside, analysts clearly believe Enersys is more favorable than Nextpower.

Profitability

This table compares Enersys and Nextpower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enersys	9.29%	24.02%	11.42%
Nextpower	15.98%	25.33%	14.63%

Volatility and Risk

Enersys has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Nextpower has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Insider and Institutional Ownership

94.9% of Enersys shares are owned by institutional investors. Comparatively, 67.4% of Nextpower shares are owned by institutional investors. 1.1% of Enersys shares are owned by company insiders. Comparatively, 0.8% of Nextpower shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Enersys and Nextpower”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enersys	$3.75 billion	1.41	$293.56 million	$9.34	15.74
Nextpower	$3.56 billion	4.47	$585.88 million	$3.97	26.42

Nextpower has lower revenue, but higher earnings than Enersys. Enersys is trading at a lower price-to-earnings ratio than Nextpower, indicating that it is currently the more affordable of the two stocks.

Summary

Nextpower beats Enersys on 10 of the 15 factors compared between the two stocks.

About Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.