NuScale Power (NYSE:SMR) & GrafTech International (NYSE:EAF) Critical Contrast

NuScale Power (NYSE:SMR) and GrafTech International (NYSE:EAF) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

78.4% of NuScale Power shares are owned by institutional investors. Comparatively, 92.8% of GrafTech International shares are owned by institutional investors. 1.3% of NuScale Power shares are owned by insiders. Comparatively, 1.2% of GrafTech International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

NuScale Power has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, GrafTech International has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Profitability

This table compares NuScale Power and GrafTech International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NuScale Power	-3,888.70%	-35.59%	-30.27%
GrafTech International	-34.58%	N/A	-17.50%

Earnings & Valuation

This table compares NuScale Power and GrafTech International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NuScale Power	$31.48 million	152.79	-$355.79 million	($2.92)	-3.83
GrafTech International	$512.92 million	0.32	-$219.84 million	($6.80)	-0.93

GrafTech International has higher revenue and earnings than NuScale Power. NuScale Power is trading at a lower price-to-earnings ratio than GrafTech International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NuScale Power and GrafTech International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NuScale Power	3	9	4	1	2.18
GrafTech International	3	3	0	0	1.50

NuScale Power presently has a consensus price target of $13.50, suggesting a potential upside of 20.61%. GrafTech International has a consensus price target of $10.67, suggesting a potential upside of 69.26%. Given GrafTech International’s higher probable upside, analysts plainly believe GrafTech International is more favorable than NuScale Power.

Summary

GrafTech International beats NuScale Power on 8 of the 15 factors compared between the two stocks.

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.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.