NuScale Power vs. BWXT: Which Nuclear Energy Stock Has an Edge Now?

Core Insights - NuScale Power and BWX Technologies are significant contributors to the advanced nuclear technology sector, with NuScale focusing on small modular reactors (SMRs) and BWX supplying nuclear components and fuel to the U.S. government [1][2] Market Overview - The global SMR market was valued at $5.81 billion in 2024 and is projected to reach $8.37 billion by 2032, growing at a CAGR of 4.98% from 2025 to 2032, indicating substantial growth opportunities for both companies [2] NuScale Power Insights - NuScale Power is experiencing momentum due to advancements in SMR technology and a growing partner base, including major tech firms and financial institutions, enhancing its market position in sustainable energy [4][7] - The increasing energy demand, particularly from data centers, is a significant growth driver, with data centers expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028 [5][6] - NuScale Power's shares have appreciated 180.3% year-to-date, attributed to its technological advancements and partnerships [12] BWX Technologies Insights - BWX Technologies is expanding its presence in the SMR market and has secured significant contracts, including $2.6 billion for U.S. Naval Nuclear Propulsion Program components, which will bolster its position in the nuclear energy sector [9][10] - The company is also preparing for future growth in the SMR market, reflecting the increasing global demand for clean energy solutions [11] - BWX Technologies' shares have increased 28.4% year-to-date, benefiting from strong bookings and government contracts [12] Financial Performance and Valuation - Both companies are currently considered overvalued, with NuScale trading at a forward Price/Sales multiple of 128.86X compared to BWX's 4.08X [15] - For 2025, the earnings estimate for NuScale Power is a loss of 45 cents per share, while BWX Technologies is expected to earn $3.55 per share, indicating a stronger earnings potential for BWX [17] Conclusion - While both companies are positioned to benefit from the nuclear energy boom, BWX Technologies has a stronger earnings outlook and established government contracts, whereas NuScale Power faces challenges in a competitive energy market [20][21]