Nextpower (NASDAQ:NXT) and Thermon Group (NYSE:THR) Financial Contrast

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

Insider & Institutional Ownership

99.8% of Thermon Group shares are held by institutional investors. Comparatively, 67.4% of Nextpower shares are held by institutional investors. 2.5% of Thermon Group shares are held by company insiders. Comparatively, 0.8% of Nextpower shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Thermon Group and Nextpower, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thermon Group	0	6	0	0	2.00
Nextpower	0	4	23	1	2.89

Thermon Group presently has a consensus price target of $57.00, suggesting a potential downside of 6.77%. Nextpower has a consensus price target of $143.19, suggesting a potential upside of 69.86%. Given Nextpower’s stronger consensus rating and higher possible upside, analysts clearly believe Nextpower is more favorable than Thermon Group.

Earnings and Valuation

This table compares Thermon Group and Nextpower”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thermon Group	$536.26 million	3.76	$44.57 million	$1.34	45.63
Nextpower	$3.56 billion	3.59	$585.88 million	$3.86	21.84

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

Profitability

This table compares Thermon Group and Nextpower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thermon Group	8.31%	13.42%	8.84%
Nextpower	16.36%	26.29%	15.02%

Risk and Volatility

Thermon Group has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Nextpower has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Summary

Nextpower beats Thermon Group on 11 of the 15 factors compared between the two stocks.

About Thermon Group

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also provides controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names; and boilers under the Vapor Power, Precision Boilers, and Caloritech brands. In addition, it offers project services; transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; transit heaters; and velocity heat products. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. It serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, 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.