Orion Energy Systems (NASDAQ:OESX – Get Free Report) and Terrestrial Energy (NASDAQ:IMSR – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
52.6% of Orion Energy Systems shares are held by institutional investors. 5.3% of Orion Energy Systems shares are held by insiders. Comparatively, 28.6% of Terrestrial Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Orion Energy Systems has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Terrestrial Energy has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Energy Systems | 1 | 1 | 2 | 0 | 2.25 |
| Terrestrial Energy | 1 | 1 | 3 | 0 | 2.40 |
Orion Energy Systems currently has a consensus target price of $36.50, indicating a potential upside of 19.32%. Terrestrial Energy has a consensus target price of $14.00, indicating a potential upside of 225.58%. Given Terrestrial Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Terrestrial Energy is more favorable than Orion Energy Systems.
Valuation & Earnings
This table compares Orion Energy Systems and Terrestrial Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Energy Systems | $86.31 million | 1.45 | -$3.16 million | ($0.05) | -611.80 |
| Terrestrial Energy | $250,000.00 | 1,822.00 | -$28.02 million | ($0.19) | -22.63 |
Orion Energy Systems has higher revenue and earnings than Terrestrial Energy. Orion Energy Systems is trading at a lower price-to-earnings ratio than Terrestrial Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Orion Energy Systems and Terrestrial Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Energy Systems | 0.04% | 11.66% | 3.40% |
| Terrestrial Energy | N/A | -16.65% | -12.52% |
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.
About Terrestrial Energy
Terrestrial Energy Inc. produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina.
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