Reviewing GrafTech International (NYSE:EAF) & NuScale Power (NYSE:SMR)

NuScale Power (NYSE:SMR) and GrafTech International (NYSE:EAF) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares NuScale Power and GrafTech International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NuScale Power	-3,888.70%	-35.59%	-30.27%
GrafTech International	-34.58%	N/A	-17.50%

Valuation and Earnings

This table compares NuScale Power and GrafTech International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NuScale Power	$10.69 million	342.29	-$355.79 million	($2.92)	-2.92
GrafTech International	$504.13 million	0.34	-$219.84 million	($6.80)	-0.98

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

Risk and Volatility

NuScale Power has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, GrafTech International has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Institutional and Insider Ownership

78.4% of NuScale Power shares are held by institutional investors. Comparatively, 92.8% of GrafTech International shares are held by institutional investors. 1.3% of NuScale Power shares are held by company insiders. Comparatively, 1.2% of GrafTech International shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for NuScale Power and GrafTech International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NuScale Power	4	8	4	1	2.12
GrafTech International	3	3	0	0	1.50

NuScale Power currently has a consensus target price of $12.96, suggesting a potential upside of 52.22%. GrafTech International has a consensus target price of $10.67, suggesting a potential upside of 60.62%. Given GrafTech International’s higher possible upside, analysts plainly believe GrafTech International is more favorable than NuScale Power.

Summary

GrafTech International beats NuScale Power on 8 of the 15 factors compared between the two stocks.

About NuScale Power

NuScale Power Corporation engages in the development and sale of modular light water reactor nuclear power plants to supply energy for electrical generation, district heating, desalination, hydrogen production, and other process heat applications. It offers NuScale Power Module (NPM), a water reactor that can generate 77 megawatts of electricity (MWe); and VOYGR power plant designs for three facility sizes that are capable of housing from one to four and six or twelve NPMs. The company was founded in 2007 and is headquartered in Portland, Oregon. NuScale Power Corporation operates as a subsidiary of Fluor Enterprises, Inc.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.