NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 45 minutes ago
0mins
Source: Fool
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 12.220
Low
18.50
Averages
32.77
High
60.00
Current: 12.220
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NuScale Power Approaches Critical Growth Milestone
- Major Partnership Agreement: NuScale Power has signed a deal with ENTRA1 and the Tennessee Valley Authority to build a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's market position.
- Financing Challenges: ENTRA1 has received $25 billion in government funding to expand energy infrastructure, but its lack of experience and transparency in the nuclear sector poses risks for NuScale, potentially impacting its stock performance due to reliance on this partnership.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be finalized by the end of 2026, which would provide crucial legal assurance for the project's timeline and viability, potentially triggering significant milestone payments.
- Market Reaction: Although the uncertainty surrounding the project has pressured NuScale's stock price, achieving the PPA could rapidly improve market conditions, boosting investor confidence and driving stock price increases.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
NNE Acquires Nuclear Logistics Firm STS for $13 Million
- Deal Overview: NNE has acquired the specialized nuclear logistics firm STS for a total consideration of $13 million, comprising $6 million in cash and $7 million in shares, which will enhance NNE's vertical integration in the nuclear energy sector and improve its capabilities in transporting nuclear fuel and reactor components.
- Financial Performance: STS reported approximately $7.1 million in revenue and $1.3 million in net income for 2025, demonstrating its profitability in the nuclear transport sector, and is expected to provide NNE with significant long-term growth opportunities, particularly as demand for advanced reactors and HALEU fuel transport rises.
- Market Reaction: Following the acquisition announcement, NNE's shares surged nearly 9% and continued to climb in subsequent trading sessions, indicating a positive market response, while retail investor discussions on Stocktwits increased by 146%, reflecting strong bullish sentiment towards NNE.
- Competitive Advantage: This acquisition not only grants NNE access to STS's experience in completing nuclear transport projects in over 40 countries and approvals covering 90% of active U.S. Nuclear Regulatory Commission spent fuel routes but also establishes a solid foundation for future business growth, creating an operational moat in the nuclear supply chain.
See More
Three Stocks with Exciting Growth Potential
- Nuclear Renaissance Opportunity: NuScale Power, a leader in small modular reactors, has a market cap of only $4.2 billion, and with surging electricity demand, it stands to benefit from a $10 trillion nuclear market opportunity, leveraging its rapid deployment capabilities to gain a competitive edge in the energy sector.
- Electric Vehicle Market Potential: Rivian Automotive, valued at $18 billion, may lack Tesla's production capacity, but its newly launched R2 model has secured an order for 50,000 units from Uber, indicating significant potential in the robotaxi market that could drive higher valuations for the company.
- Digital Banking Growth: Nu Holdings has rapidly expanded from 99 million to 135 million users since its inception in 2013, achieving profitability in 2023, and despite facing increased competition, it trades at a discount with a P/E ratio of 19.6, highlighting its long-term growth appeal in the Latin American market.
- Competitive Market Pressures: While Nu Holdings has penetrated over half of the Brazilian market, increasing competition may impact future growth; however, its strong foundation and profitability make its stock a worthwhile long-term investment despite current challenges.
See More
NASDAQ 100 Pre-Market Indicator Rises by 358.18
- Market Indicator Surge: The NASDAQ 100 Pre-Market Indicator increased by 358.18 points to 29,839.82, reflecting investor optimism that may indicate strong performance at the market open.
- Active Trading Volume: The total pre-market volume stands at 139,238,647 shares, indicating a high level of market participation that could influence liquidity and price volatility post-open.
- Nokia's Strong Performance: Nokia Corporation (NOK) shares rose by $0.20 to $15.67 with a trading volume of 21,596,173 shares, hitting a 52-week high, reflecting market confidence in its future growth prospects.
- Redwire Corporation Recommendation: Redwire Corporation (RDW) shares increased by $2.36 to $19.85 with 8,003,091 shares traded, and Zacks reports its current mean recommendation is in the 'buy range', indicating analysts' optimism about its outlook.
See More
NuScale Power Approaches Critical Growth Milestone
- Major Partnership Agreement: NuScale Power has signed a deal with ENTRA1 and the Tennessee Valley Authority to build a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's market position.
- Financing Challenges: ENTRA1 has received $25 billion in government funding to expand energy infrastructure, but its lack of experience and transparency in the nuclear sector poses risks for NuScale, potentially impacting its stock performance due to reliance on this partnership.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be finalized by the end of 2026, which would provide crucial legal assurance for the project's timeline and viability, potentially triggering significant milestone payments.
- Market Reaction: Although the uncertainty surrounding the project has pressured NuScale's stock price, achieving the PPA could rapidly improve market conditions, boosting investor confidence and driving stock price increases.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
NNE Acquires Nuclear Logistics Firm STS for $13 Million
- Deal Overview: NNE has acquired the specialized nuclear logistics firm STS for a total consideration of $13 million, comprising $6 million in cash and $7 million in shares, which will enhance NNE's vertical integration in the nuclear energy sector and improve its capabilities in transporting nuclear fuel and reactor components.
- Financial Performance: STS reported approximately $7.1 million in revenue and $1.3 million in net income for 2025, demonstrating its profitability in the nuclear transport sector, and is expected to provide NNE with significant long-term growth opportunities, particularly as demand for advanced reactors and HALEU fuel transport rises.
- Market Reaction: Following the acquisition announcement, NNE's shares surged nearly 9% and continued to climb in subsequent trading sessions, indicating a positive market response, while retail investor discussions on Stocktwits increased by 146%, reflecting strong bullish sentiment towards NNE.
- Competitive Advantage: This acquisition not only grants NNE access to STS's experience in completing nuclear transport projects in over 40 countries and approvals covering 90% of active U.S. Nuclear Regulatory Commission spent fuel routes but also establishes a solid foundation for future business growth, creating an operational moat in the nuclear supply chain.
See More
Three Stocks with Exciting Growth Potential
- Nuclear Renaissance Opportunity: NuScale Power, a leader in small modular reactors, has a market cap of only $4.2 billion, and with surging electricity demand, it stands to benefit from a $10 trillion nuclear market opportunity, leveraging its rapid deployment capabilities to gain a competitive edge in the energy sector.
- Electric Vehicle Market Potential: Rivian Automotive, valued at $18 billion, may lack Tesla's production capacity, but its newly launched R2 model has secured an order for 50,000 units from Uber, indicating significant potential in the robotaxi market that could drive higher valuations for the company.
- Digital Banking Growth: Nu Holdings has rapidly expanded from 99 million to 135 million users since its inception in 2013, achieving profitability in 2023, and despite facing increased competition, it trades at a discount with a P/E ratio of 19.6, highlighting its long-term growth appeal in the Latin American market.
- Competitive Market Pressures: While Nu Holdings has penetrated over half of the Brazilian market, increasing competition may impact future growth; however, its strong foundation and profitability make its stock a worthwhile long-term investment despite current challenges.
See More
NASDAQ 100 Pre-Market Indicator Rises by 358.18
- Market Indicator Surge: The NASDAQ 100 Pre-Market Indicator increased by 358.18 points to 29,839.82, reflecting investor optimism that may indicate strong performance at the market open.
- Active Trading Volume: The total pre-market volume stands at 139,238,647 shares, indicating a high level of market participation that could influence liquidity and price volatility post-open.
- Nokia's Strong Performance: Nokia Corporation (NOK) shares rose by $0.20 to $15.67 with a trading volume of 21,596,173 shares, hitting a 52-week high, reflecting market confidence in its future growth prospects.
- Redwire Corporation Recommendation: Redwire Corporation (RDW) shares increased by $2.36 to $19.85 with 8,003,091 shares traded, and Zacks reports its current mean recommendation is in the 'buy range', indicating analysts' optimism about its outlook.
See More
