CSLM Acquisition (NASDAQ:SPWR – Get Free Report) and Terrestrial Energy (NASDAQ:IMSR – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Risk and Volatility
CSLM Acquisition has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Terrestrial Energy has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500.
Profitability
This table compares CSLM Acquisition and Terrestrial Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CSLM Acquisition | -4.82% | N/A | -5.38% |
| Terrestrial Energy | N/A | -16.65% | -12.52% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CSLM Acquisition | 1 | 0 | 0 | 0 | 1.00 |
| Terrestrial Energy | 1 | 1 | 3 | 0 | 2.40 |
Terrestrial Energy has a consensus target price of $14.00, indicating a potential upside of 311.76%. Given Terrestrial Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Terrestrial Energy is more favorable than CSLM Acquisition.
Earnings & Valuation
This table compares CSLM Acquisition and Terrestrial Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CSLM Acquisition | $300.00 million | 0.20 | -$45.35 million | ($0.19) | -1.48 |
| Terrestrial Energy | $250,000.00 | 1,440.65 | -$28.02 million | ($0.19) | -17.89 |
Terrestrial Energy has lower revenue, but higher earnings than CSLM Acquisition. Terrestrial Energy is trading at a lower price-to-earnings ratio than CSLM Acquisition, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
47.4% of CSLM Acquisition shares are owned by institutional investors. 24.5% of CSLM Acquisition shares are owned by company insiders. Comparatively, 28.6% of Terrestrial Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Terrestrial Energy beats CSLM Acquisition on 8 of the 13 factors compared between the two stocks.
About CSLM Acquisition
Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.
About Terrestrial Energy
Terrestrial Energy Inc. produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina.
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