Contrasting GE Vernova (NYSE:GEV) and Orion Energy Systems (NASDAQ:OESX)

GE Vernova (NYSE:GEV) and Orion Energy Systems (NASDAQ:OESX) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Institutional & Insider Ownership

52.6% of Orion Energy Systems shares are owned by institutional investors. 0.2% of GE Vernova 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 recent ratings and target prices for GE Vernova and Orion Energy Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	2	4	27	2	2.83
Orion Energy Systems	0	2	2	0	2.50

GE Vernova presently has a consensus price target of $1,150.87, indicating a potential upside of 31.35%. Orion Energy Systems has a consensus price target of $36.50, indicating a potential upside of 75.23%. Given Orion Energy Systems’ higher probable upside, analysts plainly believe Orion Energy Systems is more favorable than GE Vernova.

Valuation and Earnings

This table compares GE Vernova 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
GE Vernova	$38.07 billion	6.09	$4.88 billion	$38.11	22.99
Orion Energy Systems	$86.31 million	0.99	-$3.16 million	($0.05)	-416.60

GE Vernova has higher revenue and earnings than Orion Energy Systems. Orion Energy Systems is trading at a lower price-to-earnings ratio than GE Vernova, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

GE Vernova has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Orion Energy Systems has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares GE Vernova and Orion Energy Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Vernova	23.54%	46.50%	8.07%
Orion Energy Systems	0.04%	11.66%	3.40%

Summary

GE Vernova beats Orion Energy Systems on 12 of the 15 factors compared between the two stocks.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

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.