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From Approval to Ambition: The Clear Divide Between NuScale & OKLO
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Key Takeaways
NuScale's reactor design is NRC-approved, while OKLO is still in the early pre-application phase.
SMR targets data centers, hydrogen and more with real customer interest and build-ready technology.
OKLO trades at a 36.79 P/B ratio despite no earnings or plants compared to SMRs 26.30.
NuScale Power Corporation (SMR - Free Report) is a well-known firm in the nuclear energy space, while Oklo Inc. (OKLO - Free Report) is an emerging player, gaining visibility for its future deployment plans. Despite its pre-revenue and pre-licensed status, OKLO has skyrocketed 701.5% over the past year, surpassing the 413.3% surge of SMR.
One-Year Price Chart
Image Source: Zacks Investment Research
Does it mean that OKLO is a must-have stock for investors? To come to the investment conclusion, let’s delve into the fundamentals and business developments of both stocks.
NuScale's Regulatory Head Start vs. Oklo's Long Road Ahead
In the nuclear energy space, when it comes to regulatory readiness, NuScale Power is far ahead of OKLO. The U.S. Nuclear Regulatory Commission (“NRC”) has already approved SMR’s reactor design, which is essential, while the process took more than a decade, culminating in 2020. Thus, the small modular reactor technology of NuScale Power has received a green signal for construction and deployment.
On the contrary, Oklo’s entire business plan relies heavily on support from the U.S. government. It needs favorable policies, contracts from the Department of Defense (“DOD”), and most importantly, approval from the NRC to move forward. Although the company is making some progress, NRC’s approval process is known to be slow and complex. Oklo is still in the early pre-application stage for its first plant. That means there's a long road ahead before any construction or power generation can begin, and any delays or changes in government priorities could significantly affect the company's future.
NuScale’s Commercial Readiness vs. Oklo’s Early-Stage Ambitions
NuScale is already targeting major industries like data centers, AI operations, old coal plants being converted to nuclear, factories needing industrial heat, hydrogen production and even water desalination. These aren't just ideas, but are backed by real data, strong customer interest and the company is already set up to start building.
Oklo is aiming at similar markets but is still in the early stages. It hasn’t built or delivered any power plants yet, and its energy and radioisotope projects are still years away from actually making money. It is to be noted that in early 2025, the company reported no revenues despite several years of development.
Why are Investors Willing to Pay a Premium for OKLO?
Despite the backdrop, OKLO’s valuation chart seems robust in comparison to SMR, citing the fact that investors are optimistic with the assumption that OKLO will provide clean and reliable energy once its first Aurora plant becomes operational between late 2027 and early 2028.
Notably, Oklo is currently trading at a trailing 12-month price-to-book (P/B) of 36.79x. This represents a strong premium compared with NuScale Power’s 26.30x.
Image Source: Zacks Investment Research
Thus, it seems that OKLO, which hasn’t witnessed any earnings estimate revisions over the past seven days for 2025, is trading at levels that don’t match its fundamentals. Hence, investors should avoid investing in the company, which currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
Those who have already invested in the SMR stock should hold it as the company currently offers lower execution risk and more near-term visibility than OKLO. NuScale Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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From Approval to Ambition: The Clear Divide Between NuScale & OKLO
Key Takeaways
NuScale Power Corporation (SMR - Free Report) is a well-known firm in the nuclear energy space, while Oklo Inc. (OKLO - Free Report) is an emerging player, gaining visibility for its future deployment plans. Despite its pre-revenue and pre-licensed status, OKLO has skyrocketed 701.5% over the past year, surpassing the 413.3% surge of SMR.
One-Year Price Chart
Does it mean that OKLO is a must-have stock for investors? To come to the investment conclusion, let’s delve into the fundamentals and business developments of both stocks.
NuScale's Regulatory Head Start vs. Oklo's Long Road Ahead
In the nuclear energy space, when it comes to regulatory readiness, NuScale Power is far ahead of OKLO. The U.S. Nuclear Regulatory Commission (“NRC”) has already approved SMR’s reactor design, which is essential, while the process took more than a decade, culminating in 2020. Thus, the small modular reactor technology of NuScale Power has received a green signal for construction and deployment.
On the contrary, Oklo’s entire business plan relies heavily on support from the U.S. government. It needs favorable policies, contracts from the Department of Defense (“DOD”), and most importantly, approval from the NRC to move forward. Although the company is making some progress, NRC’s approval process is known to be slow and complex. Oklo is still in the early pre-application stage for its first plant. That means there's a long road ahead before any construction or power generation can begin, and any delays or changes in government priorities could significantly affect the company's future.
NuScale’s Commercial Readiness vs. Oklo’s Early-Stage Ambitions
NuScale is already targeting major industries like data centers, AI operations, old coal plants being converted to nuclear, factories needing industrial heat, hydrogen production and even water desalination. These aren't just ideas, but are backed by real data, strong customer interest and the company is already set up to start building.
Oklo is aiming at similar markets but is still in the early stages. It hasn’t built or delivered any power plants yet, and its energy and radioisotope projects are still years away from actually making money. It is to be noted that in early 2025, the company reported no revenues despite several years of development.
Why are Investors Willing to Pay a Premium for OKLO?
Despite the backdrop, OKLO’s valuation chart seems robust in comparison to SMR, citing the fact that investors are optimistic with the assumption that OKLO will provide clean and reliable energy once its first Aurora plant becomes operational between late 2027 and early 2028.
Notably, Oklo is currently trading at a trailing 12-month price-to-book (P/B) of 36.79x. This represents a strong premium compared with NuScale Power’s 26.30x.
Thus, it seems that OKLO, which hasn’t witnessed any earnings estimate revisions over the past seven days for 2025, is trading at levels that don’t match its fundamentals. Hence, investors should avoid investing in the company, which currently carries a Zacks Rank #4 (Sell).
Those who have already invested in the SMR stock should hold it as the company currently offers lower execution risk and more near-term visibility than OKLO. NuScale Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.