Nextpower (NASDAQ:NXT) & Principal Solar (OTCMKTS:PSWW) Head-To-Head Survey

Principal Solar (OTCMKTS:PSWW) and Nextpower (NASDAQ:NXT) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Volatility & Risk

Principal Solar has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Nextpower has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of Nextpower shares are held by institutional investors. 39.2% of Principal Solar shares are held by company insiders. Comparatively, 0.6% of Nextpower shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Principal Solar and Nextpower”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Solar	N/A	N/A	-$400,000.00	N/A	N/A
Nextpower	$3.60 billion	4.83	$509.17 million	$3.91	30.00

Nextpower has higher revenue and earnings than Principal Solar.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Principal Solar and Nextpower, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Principal Solar	0	0	0	0	0.00
Nextpower	0	6	18	1	2.80

Nextpower has a consensus price target of $108.32, indicating a potential downside of 7.65%. Given Nextpower’s stronger consensus rating and higher possible upside, analysts clearly believe Nextpower is more favorable than Principal Solar.

Profitability

This table compares Principal Solar and Nextpower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Principal Solar	N/A	N/A	N/A
Nextpower	16.43%	32.01%	17.25%

Summary

Nextpower beats Principal Solar on 11 of the 12 factors compared between the two stocks.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.

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.