Financial Review: Terrestrial Energy (IMSR) and The Competition

Terrestrial Energy (NASDAQ:IMSR) is one of 216 public companies in the “Electrical Equipment” industry, but how does it contrast to its competitors? We will compare Terrestrial Energy to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, earnings, valuation, dividends and risk.

Profitability

This table compares Terrestrial Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terrestrial Energy	N/A	-16.65%	-12.52%
Terrestrial Energy Competitors	-354.39%	-45.13%	-7.93%

Earnings & Valuation

This table compares Terrestrial Energy and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terrestrial Energy	$250,000.00	-$28.02 million	-16.55
Terrestrial Energy Competitors	$2.40 billion	$146.97 million	21.81

Terrestrial Energy’s competitors have higher revenue and earnings than Terrestrial Energy. Terrestrial Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Terrestrial Energy and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	1	4	1	2.71
Terrestrial Energy Competitors	2272	5144	7184	433	2.38

Terrestrial Energy presently has a consensus target price of $13.40, suggesting a potential upside of 326.07%. As a group, “Electrical Equipment” companies have a potential upside of 40.52%. Given Terrestrial Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Terrestrial Energy is more favorable than its competitors.

Risk & Volatility

Terrestrial Energy has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Terrestrial Energy’s competitors have a beta of -21.21, meaning that their average share price is 2,221% less volatile than the S&P 500.

Institutional and Insider Ownership

37.4% of shares of all “Electrical Equipment” companies are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by insiders. Comparatively, 15.1% of shares of all “Electrical Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Terrestrial Energy beats its competitors on 8 of the 13 factors compared.

Terrestrial Energy Company Profile

Terrestrial Energy Inc. produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina.