Critical Survey: Terrestrial Energy (IMSR) versus Its Competitors

Terrestrial Energy (NASDAQ:IMSR) is one of 218 publicly-traded companies in the “Electrical Equipment” industry, but how does it compare to its peers? We will compare Terrestrial Energy to related businesses based on the strength of its profitability, valuation, earnings, analyst recommendations, institutional ownership, dividends and risk.

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, Terrestrial Energy’s peers have a beta of -19.48, indicating that their average stock price is 2,048% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Terrestrial Energy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terrestrial Energy	1	1	2	0	2.25
Terrestrial Energy Competitors	2164	5002	6950	417	2.39

Terrestrial Energy presently has a consensus target price of $13.50, indicating a potential upside of 138.10%. As a group, “Electrical Equipment” companies have a potential upside of 21.34%. Given Terrestrial Energy’s higher probable upside, research analysts clearly believe Terrestrial Energy is more favorable than its peers.

Insider and Institutional Ownership

37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 28.6% of Terrestrial Energy shares are owned by insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Terrestrial Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terrestrial Energy	N/A	-$28.02 million	-29.84
Terrestrial Energy Competitors	$2.40 billion	$138.62 million	20.66

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

Profitability

This table compares Terrestrial Energy and its peers’ 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	-218.47%	-87.35%	-8.79%

Summary

Terrestrial Energy peers beat Terrestrial Energy on 7 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.