Critical Comparison: NET Power (NPWR) versus Its Peers

NET Power (NYSE:NPWR) is one of 21 publicly-traded companies in the “Electrical industrial apparatus” industry, but how does it compare to its peers? We will compare NET Power to related companies based on the strength of its dividends, institutional ownership, analyst recommendations, earnings, profitability, valuation and risk.

Profitability

This table compares NET Power and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NET Power	N/A	6.23%	1.91%
NET Power Competitors	-211.08%	-93.75%	-17.25%

Volatility and Risk

NET Power has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, NET Power’s peers have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares NET Power and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NET Power	$250,000.00	-$77.23 million	-2.95
NET Power Competitors	$534.72 million	-$136.01 million	-0.86

NET Power’s peers have higher revenue, but lower earnings than NET Power. NET Power is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

53.6% of NET Power shares are held by institutional investors. Comparatively, 53.1% of shares of all “Electrical industrial apparatus” companies are held by institutional investors. 2.7% of NET Power shares are held by insiders. Comparatively, 10.7% of shares of all “Electrical industrial apparatus” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for NET Power and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NET Power	0	1	1	1	3.00
NET Power Competitors	96	606	846	36	2.52

NET Power presently has a consensus target price of $4.50, suggesting a potential upside of 127.85%. As a group, “Electrical industrial apparatus” companies have a potential upside of 26.95%. Given NET Power’s stronger consensus rating and higher probable upside, research analysts clearly believe NET Power is more favorable than its peers.

Summary

NET Power beats its peers on 8 of the 13 factors compared.

NET Power Company Profile

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.