Contrasting Snow Lake Resources (NASDAQ:LITM) and NET Power (NYSE:NPWR)

NET Power (NYSE:NPWR) and Snow Lake Resources (NASDAQ:LITM) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares NET Power and Snow Lake Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NET Power	N/A	N/A	-$49.19 million	($7.65)	-0.28
Snow Lake Resources	N/A	N/A	-$11.46 million	($3.90)	-0.78

Snow Lake Resources is trading at a lower price-to-earnings ratio than NET Power, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NET Power and Snow Lake Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NET Power	N/A	53.08%	16.63%
Snow Lake Resources	N/A	N/A	N/A

Institutional and Insider Ownership

53.6% of NET Power shares are held by institutional investors. Comparatively, 0.2% of Snow Lake Resources shares are held by institutional investors. 2.1% of NET Power shares are held by insiders. Comparatively, 13.4% of Snow Lake Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

NET Power has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Snow Lake Resources has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NET Power and Snow Lake Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NET Power	1	1	1	0	2.00
Snow Lake Resources	1	0	0	0	1.00

NET Power presently has a consensus target price of $3.50, indicating a potential upside of 63.93%. Given NET Power’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NET Power is more favorable than Snow Lake Resources.

Summary

NET Power beats Snow Lake Resources on 8 of the 11 factors compared between the two stocks.

About NET Power

NET Power Inc. operates as a clean energy technology company. The company invents, develops, and licenses clean power generation technology. NET Power Inc. was founded in 2010 and is headquartered in Durham, North Carolina.

About Snow Lake Resources

Snow Lake Resources Ltd., a natural resource exploration company, engages in the exploration and development of mineral resources in Canada. The company explores for lithium mineral resources. Its flagship property is the Thomson Brothers and Grass River lithium projects located to Crowduck Bay Fault region. The company was incorporated in 2018 and is based in Winnipeg, Canada.