Analyzing NET Power (NYSE:NPWR) and Central Puerto (NYSE:CEPU)

Central Puerto (NYSE:CEPU) and NET Power (NYSE:NPWR) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

3.0% of Central Puerto shares are owned by institutional investors. Comparatively, 53.6% of NET Power shares are owned by institutional investors. 0.1% of Central Puerto shares are owned by insiders. Comparatively, 2.1% of NET Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Central Puerto and NET Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	1	0	2.50
NET Power	1	1	1	0	2.00

Central Puerto currently has a consensus target price of $17.50, suggesting a potential upside of 14.57%. NET Power has a consensus target price of $3.50, suggesting a potential upside of 143.90%. Given NET Power’s higher probable upside, analysts clearly believe NET Power is more favorable than Central Puerto.

Volatility & Risk

Central Puerto has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, NET Power has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Central Puerto and NET Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Puerto	$782.60 million	2.95	$277.08 million	$2.08	7.34
NET Power	N/A	N/A	-$578.63 million	($5.89)	-0.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Puerto	37.86%	15.93%	11.06%
NET Power	N/A	133.74%	43.90%

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

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.