NET Power (NYSE:NPWR – Get Free Report) and Orion Energy Systems (NASDAQ:OESX – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Risk & Volatility
NET Power has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Orion Energy Systems has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares NET Power and Orion Energy Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NET Power | $250,000.00 | 1,526.06 | -$578.63 million | ($6.44) | -0.26 |
| Orion Energy Systems | $86.31 million | 0.94 | -$3.16 million | ($0.05) | -396.60 |
Orion Energy Systems has higher revenue and earnings than NET Power. Orion Energy Systems is trading at a lower price-to-earnings ratio than NET Power, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NET Power and Orion Energy Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NET Power | N/A | 212.89% | 64.20% |
| Orion Energy Systems | 0.04% | 11.66% | 3.40% |
Institutional & Insider Ownership
53.6% of NET Power shares are owned by institutional investors. Comparatively, 52.6% of Orion Energy Systems shares are owned by institutional investors. 2.1% of NET Power shares are owned by insiders. Comparatively, 5.3% of Orion Energy Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for NET Power and Orion Energy Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NET Power | 1 | 1 | 1 | 0 | 2.00 |
| Orion Energy Systems | 1 | 0 | 1 | 1 | 2.67 |
NET Power currently has a consensus target price of $3.50, suggesting a potential upside of 105.88%. Orion Energy Systems has a consensus target price of $30.00, suggesting a potential upside of 51.29%. Given NET Power’s higher probable upside, research analysts clearly believe NET Power is more favorable than Orion Energy Systems.
About NET Power
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 Orion Energy Systems
Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.
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