Head-To-Head Review: Nextpower (NASDAQ:NXT) and Principal Solar (OTCMKTS:PSWW)

Nextpower (NASDAQ:NXT) and Principal Solar (OTCMKTS:PSWW) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Nextpower and Principal Solar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$3.60 billion	4.83	$509.17 million	$3.91	30.00
Principal Solar	N/A	N/A	-$400,000.00	N/A	N/A

Nextpower has higher revenue and earnings than Principal Solar.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nextpower and Principal Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	6	18	1	2.80
Principal Solar	0	0	0	0	0.00

Nextpower presently has a consensus price target of $108.32, indicating a potential downside of 7.65%. Given Nextpower’s stronger consensus rating and higher probable upside, analysts plainly believe Nextpower is more favorable than Principal Solar.

Profitability

This table compares Nextpower and Principal Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextpower	16.43%	32.01%	17.25%
Principal Solar	N/A	N/A	N/A

Volatility and Risk

Nextpower has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Principal Solar has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Insider and Institutional Ownership

67.4% of Nextpower shares are owned by institutional investors. 0.6% of Nextpower shares are owned by company insiders. Comparatively, 39.2% of Principal Solar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Nextpower beats Principal Solar on 11 of the 12 factors compared between the two stocks.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.