Financial Analysis: NET Power (NYSE:NPWR) and Central Puerto (NYSE:CEPU)

NET Power (NYSE:NPWRGet Free Report) and Central Puerto (NYSE:CEPUGet Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

NET Power has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Central Puerto has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

53.6% of NET Power shares are held by institutional investors. Comparatively, 3.0% of Central Puerto shares are held by institutional investors. 2.1% of NET Power shares are held by company insiders. Comparatively, 0.1% of Central Puerto shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NET Power and Central Puerto”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NET Power $250,000.00 1,306.12 -$578.63 million ($5.89) -0.25
Central Puerto $1,230.28 billion 0.00 $277.08 million $2.08 7.17

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

Profitability

This table compares NET Power and Central Puerto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NET Power N/A 133.74% 43.90%
Central Puerto 37.86% 15.93% 11.06%

Analyst Ratings

This is a summary of current ratings and price targets for NET Power and Central Puerto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NET Power 1 1 1 0 2.00
Central Puerto 0 1 1 0 2.50

NET Power currently has a consensus target price of $3.50, suggesting a potential upside of 140.55%. Central Puerto has a consensus target price of $17.50, suggesting a potential upside of 17.42%. Given NET Power’s higher possible upside, equities analysts plainly believe NET Power is more favorable than Central Puerto.

Summary

NET Power beats Central Puerto on 7 of the 13 factors compared between the two stocks.

About NET Power

(Get Free Report)

NET Power Inc. operates as a clean energy technology company. The company invents, develops, and licenses clean power generation technology. NET Power Inc. was founded in 2010 and is headquartered in Durham, North Carolina.

About Central Puerto

(Get Free Report)

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

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