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SMR or BWXT: Why One Nuclear Stock Looks More Attractive
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Key Takeaways
BWXT looks better positioned than NuScale with steady revenues and broader nuclear market exposure.
BWXT ended the quarter with about $8.7B in backlog across government and commercial nuclear programs.
NuScale offers long-term SMR upside, but reactor sales are pending and project timelines remain uncertain.
Nuclear energy is once again attracting serious investor attention. Surging electricity demand from artificial intelligence (AI)-powered data centers, industrial electrification and grid modernization is strengthening the case for reliable, carbon-free baseload power. Bank of America recently estimated that nuclear energy could become a $10 trillion market over the coming decades, highlighting the sector's growing importance.
Among the companies benefiting from this trend are NuScale Power (SMR - Free Report) and BWX Technologies (BWXT - Free Report) . While both stand to gain from the renewed interest in nuclear power, they approach the opportunity from different angles. NuScale is focused on commercializing small modular reactor (SMR - Free Report) technology, whereas BWX Technologies already generates steady revenues by supplying nuclear components and services for government and commercial customers while expanding into the SMR market. So, which stock looks like the stronger investment today?
The Case for NuScale Power Stock
NuScale offers one of the most compelling long-term growth stories in advanced nuclear energy. The company is developing factory-built small modular reactors designed to deliver reliable, around-the-clock electricity while offering greater flexibility than traditional large nuclear plants. Its technology remains the first and only SMR design to receive multiple approvals from the U.S. Nuclear Regulatory Commission, giving NuScale an important regulatory advantage over many competitors. The company also emphasizes passive safety systems, commercially available low-enriched uranium fuel and modular construction, all of which could simplify future deployment.
Commercial momentum is gradually improving as well. NuScale's exclusive partner, ENTRA1 Energy, continues working with the Tennessee Valley Authority on plans to develop up to 6 gigawatts of nuclear capacity using NuScale technology, a project that could become the largest nuclear deployment program in U.S. history. Meanwhile, Romania's RoPower project has advanced into its next development phase after shareholder approval, allowing work to progress toward financing and site-specific engineering. The company has also strengthened its fuel supply chain through an expanded partnership with Framatome while maintaining more than $1 billion in liquidity, providing financial flexibility as commercialization efforts continue.
Still, NuScale remains an execution story rather than an established operating business. Commercial reactor sales have yet to materialize, revenues remain limited and investors continue to wait for binding customer agreements. Large nuclear projects also depend on financing, regulatory approvals and customer commitments, making project timelines difficult to predict. While the long-term opportunity is significant, the investment case still requires patience.
The Case for BWX Technologies Stock
BWX Technologies enters the nuclear revival from a much stronger operating position. Unlike many companies pursuing future nuclear opportunities, BWXT already generates consistent revenue from naval nuclear propulsion, government nuclear programs, commercial reactor services and precision manufacturing. These businesses provide dependable cash flows while positioning the company to participate in future nuclear expansion.
Its growth outlook continues to strengthen through both government and commercial markets. During the first quarter of 2026, commercial operations more than doubled revenue as demand increased for nuclear manufacturing, field services, fuel handling and engineering work. Government operations also expanded, supported by naval reactor programs and uranium processing activities. The company recently raised its full-year guidance after reporting strong quarterly execution and continues investing in additional manufacturing capabilities through acquisitions to support future commercial reactor construction.
Perhaps BWXT's biggest strength is its exceptional revenue visibility. The company ended the quarter with approximately $8.7 billion in backlog supported by naval nuclear propulsion, uranium processing, commercial nuclear manufacturing and advanced reactor programs. Major contract awards under the U.S. Naval Nuclear Propulsion Program further reinforce this visibility, while BWXT continues expanding its presence in the growing SMR supply chain through projects in Canada and other international markets. Rather than relying on a single breakthrough project, BWXT benefits from multiple long-duration revenue streams that reduce execution risk while allowing investors to participate in the broader nuclear growth story.
Price Performance
Investor sentiment already reflects the difference in execution. BWX Technologies’ shares have gained 18.4% year to date, supported by strong operating performance, contract wins and improving earnings visibility. In contrast, NuScale shares have declined 29%, as investors continue weighing its long commercialization timeline against its considerable future potential. BWXT currently offers greater stability, while NuScale remains a higher-risk, higher-reward investment.
Image Source: Zacks Investment Research
Valuation
The valuation gap is equally striking. NuScale trades at approximately 34.29 times forward sales, reflecting high expectations for future commercialization. BWXT trades at a much lower 4.73 times forward sales, offering investors exposure to the nuclear theme at a considerably more reasonable valuation backed by an established operating business.
Image Source: Zacks Investment Research
EPS Estimates
Consensus estimates also favor BWXT's consistency. The Zacks Consensus Estimate for BWXT's bottom line implies growth of 15% for 2026 and another 14% for 2027, reflecting sustained demand across both government and commercial operations.
Image Source: Zacks Investment Research
NuScale is projected to deliver 79% EPS growth in 2026, but estimates indicate an 82% decline in 2027, highlighting the uneven nature of project-driven commercialization and the uncertainty surrounding the timing of future contracts.
Image Source: Zacks Investment Research
Which Stock Should Investors Prefer?
Both companies carry a Zacks Rank #3 (Hold) and are well-positioned to benefit from the long-term expansion of nuclear energy. However, BWX Technologies appears slightly better positioned today. It combines strong contract visibility, diversified revenue streams, expanding participation in advanced nuclear technologies and a far more reasonable valuation. NuScale still offers meaningful upside if commercial deployments accelerate, but for investors seeking a more balanced combination of growth and execution, BWXT currently stands out as the stronger choice.
View the Zacks #1 Rank List
Image: Bigstock
SMR or BWXT: Why One Nuclear Stock Looks More Attractive
Key Takeaways
Nuclear energy is once again attracting serious investor attention. Surging electricity demand from artificial intelligence (AI)-powered data centers, industrial electrification and grid modernization is strengthening the case for reliable, carbon-free baseload power. Bank of America recently estimated that nuclear energy could become a $10 trillion market over the coming decades, highlighting the sector's growing importance.
Among the companies benefiting from this trend are NuScale Power (SMR - Free Report) and BWX Technologies (BWXT - Free Report) . While both stand to gain from the renewed interest in nuclear power, they approach the opportunity from different angles. NuScale is focused on commercializing small modular reactor (SMR - Free Report) technology, whereas BWX Technologies already generates steady revenues by supplying nuclear components and services for government and commercial customers while expanding into the SMR market. So, which stock looks like the stronger investment today?
The Case for NuScale Power Stock
NuScale offers one of the most compelling long-term growth stories in advanced nuclear energy. The company is developing factory-built small modular reactors designed to deliver reliable, around-the-clock electricity while offering greater flexibility than traditional large nuclear plants. Its technology remains the first and only SMR design to receive multiple approvals from the U.S. Nuclear Regulatory Commission, giving NuScale an important regulatory advantage over many competitors. The company also emphasizes passive safety systems, commercially available low-enriched uranium fuel and modular construction, all of which could simplify future deployment.
Commercial momentum is gradually improving as well. NuScale's exclusive partner, ENTRA1 Energy, continues working with the Tennessee Valley Authority on plans to develop up to 6 gigawatts of nuclear capacity using NuScale technology, a project that could become the largest nuclear deployment program in U.S. history. Meanwhile, Romania's RoPower project has advanced into its next development phase after shareholder approval, allowing work to progress toward financing and site-specific engineering. The company has also strengthened its fuel supply chain through an expanded partnership with Framatome while maintaining more than $1 billion in liquidity, providing financial flexibility as commercialization efforts continue.
Still, NuScale remains an execution story rather than an established operating business. Commercial reactor sales have yet to materialize, revenues remain limited and investors continue to wait for binding customer agreements. Large nuclear projects also depend on financing, regulatory approvals and customer commitments, making project timelines difficult to predict. While the long-term opportunity is significant, the investment case still requires patience.
The Case for BWX Technologies Stock
BWX Technologies enters the nuclear revival from a much stronger operating position. Unlike many companies pursuing future nuclear opportunities, BWXT already generates consistent revenue from naval nuclear propulsion, government nuclear programs, commercial reactor services and precision manufacturing. These businesses provide dependable cash flows while positioning the company to participate in future nuclear expansion.
Its growth outlook continues to strengthen through both government and commercial markets. During the first quarter of 2026, commercial operations more than doubled revenue as demand increased for nuclear manufacturing, field services, fuel handling and engineering work. Government operations also expanded, supported by naval reactor programs and uranium processing activities. The company recently raised its full-year guidance after reporting strong quarterly execution and continues investing in additional manufacturing capabilities through acquisitions to support future commercial reactor construction.
Perhaps BWXT's biggest strength is its exceptional revenue visibility. The company ended the quarter with approximately $8.7 billion in backlog supported by naval nuclear propulsion, uranium processing, commercial nuclear manufacturing and advanced reactor programs. Major contract awards under the U.S. Naval Nuclear Propulsion Program further reinforce this visibility, while BWXT continues expanding its presence in the growing SMR supply chain through projects in Canada and other international markets. Rather than relying on a single breakthrough project, BWXT benefits from multiple long-duration revenue streams that reduce execution risk while allowing investors to participate in the broader nuclear growth story.
Price Performance
Investor sentiment already reflects the difference in execution. BWX Technologies’ shares have gained 18.4% year to date, supported by strong operating performance, contract wins and improving earnings visibility. In contrast, NuScale shares have declined 29%, as investors continue weighing its long commercialization timeline against its considerable future potential. BWXT currently offers greater stability, while NuScale remains a higher-risk, higher-reward investment.
Valuation
The valuation gap is equally striking. NuScale trades at approximately 34.29 times forward sales, reflecting high expectations for future commercialization. BWXT trades at a much lower 4.73 times forward sales, offering investors exposure to the nuclear theme at a considerably more reasonable valuation backed by an established operating business.
EPS Estimates
Consensus estimates also favor BWXT's consistency. The Zacks Consensus Estimate for BWXT's bottom line implies growth of 15% for 2026 and another 14% for 2027, reflecting sustained demand across both government and commercial operations.
NuScale is projected to deliver 79% EPS growth in 2026, but estimates indicate an 82% decline in 2027, highlighting the uneven nature of project-driven commercialization and the uncertainty surrounding the timing of future contracts.
Which Stock Should Investors Prefer?
Both companies carry a Zacks Rank #3 (Hold) and are well-positioned to benefit from the long-term expansion of nuclear energy. However, BWX Technologies appears slightly better positioned today. It combines strong contract visibility, diversified revenue streams, expanding participation in advanced nuclear technologies and a far more reasonable valuation. NuScale still offers meaningful upside if commercial deployments accelerate, but for investors seeking a more balanced combination of growth and execution, BWXT currently stands out as the stronger choice.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.