Contrasting Energy Focus (NASDAQ:EFOI) & Terrestrial Energy (NASDAQ:IMSR)
by Mitch Edgeman · The Markets DailyEnergy Focus (NASDAQ:EFOI – Get Free Report) and Terrestrial Energy (NASDAQ:IMSR – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
Energy Focus has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, Terrestrial Energy has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.
Valuation & Earnings
This table compares Energy Focus and Terrestrial Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Energy Focus | $6.50 million | 2.92 | -$1.03 million | ($0.25) | -11.92 |
| Terrestrial Energy | $250,000.00 | 1,601.66 | -$28.02 million | ($0.19) | -19.89 |
Energy Focus has higher revenue and earnings than Terrestrial Energy. Terrestrial Energy is trading at a lower price-to-earnings ratio than Energy Focus, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
3.7% of Energy Focus shares are owned by institutional investors. 48.9% of Energy Focus shares are owned by company insiders. Comparatively, 28.6% of Terrestrial Energy shares are owned 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 summary of recent recommendations and price targets for Energy Focus and Terrestrial Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Energy Focus | 1 | 0 | 0 | 0 | 1.00 |
| Terrestrial Energy | 1 | 1 | 3 | 0 | 2.40 |
Terrestrial Energy has a consensus target price of $14.00, suggesting a potential upside of 270.37%. Given Terrestrial Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Terrestrial Energy is more favorable than Energy Focus.
Profitability
This table compares Energy Focus and Terrestrial Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Energy Focus | -23.77% | -42.44% | -25.33% |
| Terrestrial Energy | N/A | -16.65% | -12.52% |
Summary
Terrestrial Energy beats Energy Focus on 9 of the 14 factors compared between the two stocks.
About Energy Focus
Energy Focus, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells energy-efficient lighting systems, and controls and ultraviolet-C light disinfection products in the United States and internationally. It offers military maritime market light-emitting diode (LED) lighting products, such as Military-grade Intellitube retrofit TLED and the Invisitube ultra-low EMI TLED; and Military-grade fixtures, including LED globe lights, berth lights; high-bay fixtures and LED retrofit kits to serve the United States navy and allied foreign navies. The company also provides RedCap emergency battery backup TLEDs; EnFocus lighting platform, including dimming and color tuning; and LED retrofit solutions for linear fluorescent lamps, downlights, and retrofit kits for low-bay, high-bay and office applications; LED dock lights. It sells its products to military maritime, industrial, and commercial markets through direct sales employees, independent sales representatives, lighting agents, and distributors, as well as via e-commerce. The company was formerly known as Fiberstars, Inc. and changed its name to Energy Focus, Inc. in May 2007. Energy Focus, Inc. was founded in 1985 and is headquartered in Solon, Ohio.
About Terrestrial Energy
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.