From Approval to Ambition: The Clear Divide Between NuScale & OKLO

NuScale Power Corporation SMR is a well-known firm in the nuclear energy space, while Oklo Inc. OKLO 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 ResearchDoes 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 AheadIn 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 AmbitionsNuScale 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 ResearchThus, 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 ResearchThose 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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NuScale Power Corporation (SMR): Free Stock Analysis Report Oklo Inc. (OKLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks