Reviewing NET Power (NYSE:NPWR) and Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ:SLNG) and NET Power (NYSE:NPWR) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Stabilis Solutions and NET Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stabilis Solutions	$68.25 million	0.95	-$1.35 million	($0.07)	-49.71
NET Power	$250,000.00	1,367.17	-$578.63 million	($7.32)	-0.21

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

Institutional and Insider Ownership

3.8% of Stabilis Solutions shares are owned by institutional investors. Comparatively, 53.6% of NET Power shares are owned by institutional investors. 72.2% of Stabilis Solutions shares are owned by company insiders. Comparatively, 2.1% of NET Power 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Stabilis Solutions and NET Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stabilis Solutions	1	1	0	0	1.50
NET Power	1	1	1	0	2.00

Stabilis Solutions currently has a consensus target price of $10.00, suggesting a potential upside of 187.36%. NET Power has a consensus target price of $3.50, suggesting a potential upside of 129.81%. Given Stabilis Solutions’ higher possible upside, analysts plainly believe Stabilis Solutions is more favorable than NET Power.

Risk & Volatility

Stabilis Solutions has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, NET Power has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stabilis Solutions	-1.98%	-2.05%	-1.61%
NET Power	N/A	70.31%	23.17%

Summary

NET Power beats Stabilis Solutions on 9 of the 14 factors compared between the two stocks.

About Stabilis Solutions

Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.

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.