Contrasting T1 Energy (NYSE:TE) and Nextpower (NASDAQ:NXT)

T1 Energy (NYSE:TE) and Nextpower (NASDAQ:NXT) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for T1 Energy and Nextpower, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T1 Energy	1	1	4	1	2.71
Nextpower	0	7	17	1	2.76

T1 Energy presently has a consensus target price of $7.50, suggesting a potential upside of 4.53%. Nextpower has a consensus target price of $108.32, suggesting a potential upside of 0.17%. Given T1 Energy’s higher probable upside, research analysts plainly believe T1 Energy is more favorable than Nextpower.

Profitability

This table compares T1 Energy and Nextpower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T1 Energy	-133.07%	-121.17%	-14.59%
Nextpower	16.43%	32.01%	17.25%

Valuation & Earnings

This table compares T1 Energy and Nextpower”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T1 Energy	$2.94 million	518.28	-$450.15 million	($3.78)	-1.90
Nextpower	$2.96 billion	5.43	$509.17 million	$3.91	27.65

Nextpower has higher revenue and earnings than T1 Energy. T1 Energy is trading at a lower price-to-earnings ratio than Nextpower, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

52.3% of T1 Energy shares are owned by institutional investors. Comparatively, 67.4% of Nextpower shares are owned by institutional investors. 15.7% of T1 Energy shares are owned by company insiders. Comparatively, 0.6% of Nextpower shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

T1 Energy has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Nextpower has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500.

Summary

Nextpower beats T1 Energy on 11 of the 14 factors compared between the two stocks.

About T1 Energy

T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.