Comparing Regal Rexnord (NYSE:RRX) and Terrestrial Energy (NASDAQ:IMSR)

Terrestrial Energy (NASDAQ:IMSR) and Regal Rexnord (NYSE:RRX) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares Terrestrial Energy and Regal Rexnord’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terrestrial Energy	N/A	-13.04%	-12.70%
Regal Rexnord	3.77%	10.28%	5.13%

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 28.6% of Terrestrial Energy shares are held by insiders. Comparatively, 0.6% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Terrestrial Energy has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Terrestrial Energy and Regal Rexnord, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	3	3	1	2.50
Regal Rexnord	0	3	8	0	2.73

Terrestrial Energy currently has a consensus price target of $9.88, indicating a potential upside of 278.35%. Regal Rexnord has a consensus price target of $231.25, indicating a potential upside of 31.05%. Given Terrestrial Energy’s higher probable upside, analysts plainly believe Terrestrial Energy is more favorable than Regal Rexnord.

Valuation & Earnings

This table compares Terrestrial Energy and Regal Rexnord”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terrestrial Energy	$250,000.00	1,105.60	-$28.02 million	($0.19)	-13.74
Regal Rexnord	$5.93 billion	1.98	$279.50 million	$3.46	51.00

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

Summary

Regal Rexnord beats Terrestrial Energy on 10 of the 15 factors compared between the two stocks.

About Terrestrial Energy

Terrestrial Energy (Nasdaq: IMSR) is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the operating benefits of molten salt reactor technology in a plant design that prioritizes capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity, extending the application of nuclear energy beyond electric power markets to industrial applications such as petrochemical and chemical synthesis and data center operation.

About Regal Rexnord

Regal Rexnord Corporation designs, manufactures and sells products and systems that transmit power, control motion and move materials. Its offerings include electric motors, gear drives, bearings, couplings, clutches, brakes, conveyor components and automation technologies. The company serves customers in a range of industries, including industrial manufacturing, food and beverage, energy, commercial buildings and residential applications. Its products are used in equipment and systems such as factory machinery, conveyors, HVAC systems and material-handling operations.