NET Power (NYSE:NPWR – Get Free Report) and Siemens Energy (OTCMKTS:SMNEY – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
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% |
Institutional and Insider Ownership
53.6% of NET Power shares are owned by institutional investors. 2.1% of NET Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
| 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 presently has a consensus price target of $3.50, indicating a potential upside of 79.03%. Given NET Power’s higher probable upside, research analysts plainly believe NET Power is more favorable than Siemens Energy.
Earnings & Valuation
This table compares NET Power and Siemens Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NET Power | $250,000.00 | 1,737.13 | -$49.19 million | ($7.65) | -0.26 |
| 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.
Volatility and Risk
NET Power has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Siemens Energy has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.
Summary
Siemens Energy beats NET Power on 8 of the 14 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.
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