Critical Survey: Siemens Energy (OTCMKTS:SMNEY) and NET Power (NYSE:NPWR)

NET Power (NYSE:NPWR) and Siemens Energy (OTCMKTS:SMNEY) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

53.6% of NET Power shares are owned by institutional investors. 2.1% of NET Power shares are owned 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.

Valuation and Earnings

This table compares NET Power and Siemens Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NET Power	$250,000.00	1,897.08	-$49.19 million	($7.65)	-0.28
Siemens Energy	$43.21 billion	3.48	$1.56 billion	$1.77	99.23

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NET Power and Siemens Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NET Power	1	1	1	0	2.00
Siemens Energy	0	3	7	2	2.92

NET Power currently has a consensus price target of $3.50, suggesting a potential upside of 63.93%. Given NET Power’s higher probable upside, equities research analysts clearly believe NET Power is more favorable than Siemens Energy.

Profitability

This table compares NET Power and Siemens Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NET Power	N/A	53.08%	16.63%
Siemens Energy	4.75%	18.48%	3.50%

Risk and Volatility

NET Power has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Siemens Energy has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Summary

Siemens Energy beats NET Power on 9 of the 15 factors compared between the two stocks.

About NET Power

NET Power Inc. operates as a clean energy technology company. The company invents, develops, and licenses clean power generation technology. NET Power Inc. was founded in 2010 and is headquartered in Durham, North Carolina.

About Siemens Energy

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.