Critical Analysis: NXT Energy Solutions (NSFDF) & Its Competitors

Risk & Volatility

NXT Energy Solutions has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, NXT Energy Solutions’ peers have a beta of 2.28, meaning that their average share price is 128% more volatile than the S&P 500.

Earnings and Valuation

This table compares NXT Energy Solutions and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NXT Energy Solutions	$470,000.00	-$6.62 million	-50.80
NXT Energy Solutions Competitors	$4.68 billion	$411.58 million	5.63

NXT Energy Solutions’ peers have higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares NXT Energy Solutions and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXT Energy Solutions	N/A	2.71%	0.55%
NXT Energy Solutions Competitors	-0.30%	-34.90%	0.79%

Insider & Institutional Ownership

26.2% of NXT Energy Solutions shares are held by institutional investors. Comparatively, 60.1% of shares of all “OIL – FIELD SVCS” companies are held by institutional investors. 34.1% of NXT Energy Solutions shares are held by insiders. Comparatively, 9.4% of shares of all “OIL – FIELD SVCS” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

NXT Energy Solutions peers beat NXT Energy Solutions on 6 of the 9 factors compared.

NXT Energy Solutions Company Profile

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.