Critical Survey: NET Power (NPWR) & 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 competitors? We will compare NET Power to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Institutional and Insider Ownership

53.6% of NET Power shares are owned by institutional investors. Comparatively, 53.1% of shares of all “Electrical industrial apparatus” companies are owned by institutional investors. 2.7% of NET Power shares are owned by company insiders. Comparatively, 10.7% of shares of all “Electrical industrial apparatus” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

NET Power has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, NET Power’s competitors have a beta of 1.43, indicating that their average share price is 43% more volatile than the S&P 500.

Profitability

This table compares NET Power and its competitors’ 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%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NET Power	$250,000.00	-$77.23 million	-3.20
NET Power Competitors	$534.72 million	-$136.01 million	-3.42

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for NET Power and its competitors, 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	92	599	840	35	2.52

NET Power presently has a consensus price target of $4.50, suggesting a potential upside of 109.79%. As a group, “Electrical industrial apparatus” companies have a potential upside of 36.56%. Given NET Power’s stronger consensus rating and higher probable upside, equities analysts clearly believe NET Power is more favorable than its competitors.

Summary

NET Power beats its competitors on 9 of the 13 factors compared.

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.