Comparing Enersys (NYSE:ENS) & Nextpower (NASDAQ:NXT)

Nextpower (NASDAQ:NXT) and Enersys (NYSE:ENS) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk and Volatility

Nextpower has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nextpower and Enersys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	4	24	1	2.90
Enersys	0	2	4	0	2.67

Nextpower presently has a consensus price target of $135.93, indicating a potential upside of 35.13%. Enersys has a consensus price target of $257.50, indicating a potential upside of 73.63%. Given Enersys’ higher probable upside, analysts plainly believe Enersys is more favorable than Nextpower.

Profitability

This table compares Nextpower and Enersys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextpower	15.98%	25.33%	14.63%
Enersys	9.29%	24.02%	11.42%

Earnings & Valuation

This table compares Nextpower and Enersys”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$3.56 billion	4.26	$585.88 million	$3.97	25.34
Enersys	$3.75 billion	1.43	$293.56 million	$9.34	15.88

Nextpower has higher earnings, but lower revenue than Enersys. Enersys 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

67.4% of Nextpower shares are owned by institutional investors. Comparatively, 94.9% of Enersys shares are owned by institutional investors. 0.8% of Nextpower shares are owned by insiders. Comparatively, 1.1% of Enersys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Nextpower beats Enersys on 10 of the 15 factors compared between the two stocks.

About Nextpower

Nextpower, Inc., formerly known as Nextracker, designs and supplies solar-tracking systems and related technology for utility-scale solar power plants. Its equipment helps solar panels follow the sun across the day, increasing the amount of energy generated by a project. The company’s offerings include its NX Horizon tracker platform and TrueCapture software, which uses data and controls to adjust tracker positioning to site conditions. Nextpower also provides engineering and project support services to solar developers, contractors and plant operators.

About Enersys

EnerSys (NYSE: ENS) is a global provider of stored-energy solutions for industrial applications. Its products include batteries, chargers, power-conversion equipment and energy-storage systems, along with related services such as installation, maintenance and recycling. The company serves customers in markets including material handling, telecommunications, data centers, utilities, aerospace and defense, and transportation. Its offerings include lead-acid and lithium-ion batteries and other power systems designed for applications ranging from forklifts and other industrial vehicles to backup and grid-support power.