SMR vs. BWXT: Which Small Modular Reactor Stock is a Buy Right Now?

Core Insights - NuScale Power and BWX Technologies are key players in the nuclear energy sector, with NuScale focusing on small modular reactors and BWX supplying nuclear components and fuel to the U.S. government [1][2] Market Overview - The global small modular reactor market was valued at $5.96 billion in 2025 and is projected to reach $8.77 billion by 2034, growing at a CAGR of approximately 4.59% [2] Company Analysis: NuScale Power - NuScale Power is the only small modular reactor vendor with U.S. Nuclear Regulatory Commission design approval, providing a competitive edge [4] - The company has a significant project with ENTRA1 and Tennessee Valley Authority, planning 6 GW across multiple plants, with 12 modules already in production [5] - However, NuScale's revenues are currently low at $8.2 million for Q3 2025, and it faces substantial milestone payments and long project timelines, with meaningful revenues expected only after 2030 [6][7] Company Analysis: BWX Technologies - BWX Technologies has expanded its backlog to $7.4 billion, a 119% increase year-over-year, indicating strong demand for its nuclear products [8] - The company secured major contracts worth $1.5 billion and $1.6 billion for defense-related projects, contributing to steady multi-year revenues [9] - BWXT's revenues grew 29% year-over-year to $866 million in Q3 2025, with a 10% increase in government operations revenue [10] Earnings Estimates Comparison - NuScale Power's 2026 earnings estimate is a loss of $0.62 per share, improving from a projected loss of $2.23 per share in 2025 [13] - In contrast, BWX Technologies' 2026 earnings estimate is $4.26 per share, up from $3.81 per share in 2025, indicating a strong growth outlook [15] Stock Performance and Valuation - Over the past six months, NuScale Power shares have decreased by 59.1%, while BWX Technologies shares have increased by 17.2% [16] - NuScale Power trades at a forward sales multiple of 25.8X, significantly higher than BWX Technologies' 4.96X, making BWXT more attractive for value-seeking investors [17] Conclusion - Both companies are positioned to benefit from the nuclear energy sector's growth, but BWX Technologies shows stronger earnings potential, established contracts, and a more favorable valuation, making it a better investment choice at this time [18][19]