Financial Survey: Regal Rexnord (NYSE:RRX) and Terrestrial Energy (NASDAQ:IMSR)

Terrestrial Energy (NASDAQ:IMSR) and Regal Rexnord (NYSE:RRX) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

99.7% of Regal Rexnord shares are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by company insiders. Comparatively, 0.6% of Regal Rexnord 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.

Risk and Volatility

Terrestrial Energy has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Terrestrial Energy and Regal Rexnord’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terrestrial Energy	N/A	-13.04%	-12.70%
Regal Rexnord	3.77%	10.28%	5.13%

Valuation and Earnings

This table compares Terrestrial Energy and Regal Rexnord”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terrestrial Energy	$250,000.00	1,105.60	-$28.02 million	($0.19)	-13.74
Regal Rexnord	$5.93 billion	1.98	$279.50 million	$3.46	51.00

Regal Rexnord has higher revenue and earnings than Terrestrial Energy. Terrestrial Energy is trading at a lower price-to-earnings ratio than Regal Rexnord, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Terrestrial Energy and Regal Rexnord, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	3	3	1	2.50
Regal Rexnord	0	3	8	0	2.73

Terrestrial Energy currently has a consensus price target of $9.88, indicating a potential upside of 278.35%. Regal Rexnord has a consensus price target of $231.25, indicating a potential upside of 31.05%. Given Terrestrial Energy’s higher possible upside, equities research analysts clearly believe Terrestrial Energy is more favorable than Regal Rexnord.

Summary

Regal Rexnord beats Terrestrial Energy on 10 of the 15 factors compared between the two stocks.

About Terrestrial Energy

Terrestrial Energy (Nasdaq: IMSR) is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the operating benefits of molten salt reactor technology in a plant design that prioritizes capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity, extending the application of nuclear energy beyond electric power markets to industrial applications such as petrochemical and chemical synthesis and data center operation.

About Regal Rexnord

Regal Rexnord Corporation designs, manufactures and sells products and systems that transmit power, control motion and move materials. Its offerings include electric motors, gear drives, bearings, couplings, clutches, brakes, conveyor components and automation technologies. The company serves customers in a range of industries, including industrial manufacturing, food and beverage, energy, commercial buildings and residential applications. Its products are used in equipment and systems such as factory machinery, conveyors, HVAC systems and material-handling operations.