Nextpower (NASDAQ:NXT – Get Free Report) and Bloom Energy (NYSE:BE – Get Free Report) are both large-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Volatility & Risk
Nextpower has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Bloom Energy has a beta of 3.76, indicating that its stock price is 276% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nextpower and Bloom Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextpower | $3.63 billion | 3.52 | $585.88 million | $3.86 | 21.84 |
| Bloom Energy | $3.11 billion | 27.39 | -$88.43 million | $0.75 | 385.98 |
Nextpower has higher revenue and earnings than Bloom Energy. Nextpower is trading at a lower price-to-earnings ratio than Bloom Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
67.4% of Nextpower shares are held by institutional investors. Comparatively, 77.0% of Bloom Energy shares are held by institutional investors. 0.8% of Nextpower shares are held by insiders. Comparatively, 3.0% of Bloom Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Nextpower and Bloom Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextpower | 16.36% | 26.29% | 15.02% |
| Bloom Energy | 7.87% | 35.45% | 8.30% |
Analyst Recommendations
This is a summary of current ratings for Nextpower and Bloom Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextpower | 0 | 4 | 23 | 1 | 2.89 |
| Bloom Energy | 1 | 12 | 10 | 3 | 2.58 |
Nextpower presently has a consensus target price of $143.19, suggesting a potential upside of 69.86%. Bloom Energy has a consensus target price of $257.18, suggesting a potential downside of 11.16%. Given Nextpower’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nextpower is more favorable than Bloom Energy.
Summary
Nextpower beats Bloom Energy on 8 of the 15 factors compared between the two stocks.
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.
About Bloom Energy
Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. The company offers Bloom Energy Server, a solid oxide technology that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels into electricity through an electrochemical process without combustion. It sells its products through direct and indirect sales channels to utilities, data centers, agriculture, retail, hospitals, higher education, biotech, and manufacturing industries. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.
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