Comparing Orion Energy Systems (NASDAQ:OESX) and Terrestrial Energy (NASDAQ:IMSR)
by Danessa Lincoln · The Markets DailyTerrestrial Energy (NASDAQ:IMSR – Get Free Report) and Orion Energy Systems (NASDAQ:OESX – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Terrestrial Energy has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, Orion Energy Systems has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Terrestrial Energy and Orion Energy Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Terrestrial Energy | 1 | 1 | 3 | 0 | 2.40 |
| Orion Energy Systems | 1 | 1 | 2 | 0 | 2.25 |
Terrestrial Energy currently has a consensus target price of $14.00, indicating a potential upside of 225.58%. Orion Energy Systems has a consensus target price of $36.50, indicating a potential upside of 19.32%. Given Terrestrial Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Terrestrial Energy is more favorable than Orion Energy Systems.
Valuation and Earnings
This table compares Terrestrial Energy and Orion Energy Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Terrestrial Energy | $250,000.00 | 1,822.00 | -$28.02 million | ($0.19) | -22.63 |
| Orion Energy Systems | $86.31 million | 1.45 | -$3.16 million | ($0.05) | -611.80 |
Orion Energy Systems has higher revenue and earnings than Terrestrial Energy. Orion Energy Systems is trading at a lower price-to-earnings ratio than Terrestrial Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
52.6% of Orion Energy Systems shares are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by company insiders. Comparatively, 5.3% of Orion Energy Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Terrestrial Energy and Orion Energy Systems’ 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% |
| Orion Energy Systems | 0.04% | 11.66% | 3.40% |
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.
About Orion Energy Systems
Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.