Emerson Electric (NYSE:EMR – Get Free Report) and NuScale Power (NYSE:SMR – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Profitability
This table compares Emerson Electric and NuScale Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Emerson Electric | 13.83% | 17.58% | 8.50% |
| NuScale Power | -3,888.70% | -35.59% | -30.27% |
Institutional & Insider Ownership
74.3% of Emerson Electric shares are owned by institutional investors. Comparatively, 78.4% of NuScale Power shares are owned by institutional investors. 0.2% of Emerson Electric shares are owned by insiders. Comparatively, 1.3% of NuScale Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Analyst Ratings
This is a summary of recent ratings for Emerson Electric and NuScale Power, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Emerson Electric | 1 | 9 | 13 | 1 | 2.58 |
| NuScale Power | 4 | 8 | 4 | 1 | 2.12 |
Emerson Electric currently has a consensus price target of $169.83, indicating a potential upside of 5.00%. NuScale Power has a consensus price target of $12.96, indicating a potential upside of 67.72%. Given NuScale Power’s higher possible upside, analysts plainly believe NuScale Power is more favorable than Emerson Electric.
Earnings & Valuation
This table compares Emerson Electric and NuScale Power”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Emerson Electric | $18.02 billion | 5.03 | $2.29 billion | $4.57 | 35.39 |
| NuScale Power | $31.48 million | 105.49 | -$355.79 million | ($2.92) | -2.65 |
Emerson Electric has higher revenue and earnings than NuScale Power. NuScale Power is trading at a lower price-to-earnings ratio than Emerson Electric, indicating that it is currently the more affordable of the two stocks.
Summary
Emerson Electric beats NuScale Power on 9 of the 14 factors compared between the two stocks.
About Emerson Electric
Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
About NuScale Power
NuScale Power Corporation engages in the development and sale of modular light water reactor nuclear power plants to supply energy for electrical generation, district heating, desalination, hydrogen production, and other process heat applications. It offers NuScale Power Module (NPM), a water reactor that can generate 77 megawatts of electricity (MWe); and VOYGR power plant designs for three facility sizes that are capable of housing from one to four and six or twelve NPMs. The company was founded in 2007 and is headquartered in Portland, Oregon. NuScale Power Corporation operates as a subsidiary of Fluor Enterprises, Inc.
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