Oklo vs. BWX Technologies: Which Nuclear Innovator Stock to Buy?

Amid the evolving landscape of the global clean energy industry, nuclear energy stocks like OKLO Inc. OKLO and BWX Technologies BWXT have been gaining popularity of late. This is because nuclear energy generates nearly zero carbon emissions during operation, like other green energy sources. With increasing government support and investments in small modular and microreactor technologies, these two companies are well-positioned to play a pivotal role in the future energy mix. 

While Oklo focuses on compact fast reactors and nuclear fuel recycling, BWX Technologies specializes in small modular reactors and nuclear components for both commercial and military applications. With nuclear being the second-largest source of low-carbon electricity production globally (as per the World Nuclear Association’s January 2025 report), both OKLO and BWXT hold strong growth prospects. So, here comes the inherent question for an investor: which stock is the better buy at this moment? To assert that, let's delve deeper. 

Key Takeaways for OKLO

Recent Achievements: OKLO, which started trading on the New York Stock Exchange last year, has achieved quite a few milestones in 2024. This has strengthened its position in the nuclear energy market. The company signed one of the largest corporate power agreements in history with data center provider Switch, which came with the promise of Oklo deploying 12 gigawatts (GW) of advanced nuclear power. Following this agreement, Oklo claims to have the largest order book in the advanced nuclear industry, with a customer pipeline of 14 GW. 

OKLO also acquired Atomic Alchemy in 2024, which specializes in producing medical and industrial radioisotopes. This buyout should enhance Oklo’s ability to produce or process its own specialty isotopes and nuclear fuels, critical for advanced reactors, and reduce its dependency on international sources for radioisotopes. 

Financial Stability: The company ended 2024 with cash and cash equivalents worth $97.1 million, which was much higher than its 2023-end figure of $9.9 million. However, as of December 2024, the company did not report any notable debt. So, its financial stability seems to be solid at the moment, which, in turn, should enable Oklo to reliably fund its powerhouses, operations and growth plans in the coming years.

Challenges to Note: A major headwind to investing in OKLO is that the company is yet to generate revenues, with its first Aurora powerhouse expected to be deployed in 2027. This suggests limited top-line performance in the near term. Meanwhile, Oklo continues to incur significant operating expenses to advance its powerhouses, placing downward pressure on its bottom line. 

Therefore, while OKLO’s long-term potential in the nuclear power industry remains strong, its huge operating expenses and the prolonged timeline before revenue generation may weigh on its near-term performance. Moreover, its microreactor design is novel and untested at scale. While promising on paper, OKLO’s Aurora powerhouse design has never been deployed in a real-world environment. So, the viability of its product still hangs in the balance, which might be a cause of concern for its investors. 

Key Takeaways for BWXT

Recent Achievements: BWX Technologies ended 2024 with a record level of bookings in Commercial Operations, driven by critical equipment for North America’s first small modular reactor project and power plant refurbishments. The company also recorded robust bookings in Government Operations for naval propulsion components, special materials and multiple long-term technical services contracts. Consequently, the company recorded a robust backlog growth of 21%. 

In January 2025, BWXT secured historic manufacturing contracts for two major nuclear energy projects, which include providing support for the life extension of the Pickering Nuclear Generating Station, and the deployment of a new small modular reactor (SMR) at the Darlington site. The company is also set to acquire Kinectrics, Inc. (for approximately $525 million), which offers lifecycle management services for the global nuclear power and transmission and distribution markets, and also manufactures isotopes for the radiopharmaceutical industry. This buyout should enhance BWXT’s service offering to nuclear power and medical markets. 

Financial Stability: BWX Technologies ended 2024 with cash and cash equivalents worth $77 million, while its current debt amounted to $13 million. On the other hand, its long-term debt was $1,043 million. A comparative analysis of these figures suggests that the company should hold a solid solvency position in the near term. 

Challenges to Note: A few red flags that an investor may consider before investing in BWXT include the company’s limited international exposure. BWXT is highly U.S.-centric, both in terms of operation and revenue generation, which thereby limits its opportunity to generate revenues from the international nuclear markets.  Moreover, BWXT is a leading supplier of components for small module reactors (SMRs), the industry for which is still emerging and real deployments are scarce. So, the long-term viability of BWXT in this space remains a bit dubious. 

How Do EPS Estimates Compare for OKLO & BWXT?

The Zacks Consensus Estimate for Oklo’s 2025 earnings per share (EPS) is pegged at a loss of 43 cents, which implies an improvement from the year-ago reported loss of 74 cents. The stock’s EPS estimates, however, have been trending southward over the past 60 days.

The Zacks Consensus Estimate for BWXT’s 2025 EPS is pegged at $3.50, which calls for a year-over-year improvement of 5.1%. The stock’s EPS estimates have also been trending upward over the past 60 days.

Stock Price Performance: OKLO vs BWXT

BWXT (down 21.8%) has outperformed OKLO (down 47.4%) over the past three months. Yet, in the past year, OKLO has rallied 56.8% compared with BWXT’s 7.2% growth.

BWXT’s ROE More Attractive Than OKLO's

The figure below shows BWXT’s higher Return on Equity (ROE) than OKLO's. This indicates that OKLO has been less efficient at using its shareholder equity to generate profits than BWXT. Moreover, OKLO’s negative ROE indicates that the company has been incurring losses over the past year.

Choose BWXT Over OKLO For Now

While both Oklo and BWX Technologies are promising players in the nuclear energy space, BWXT, which currently carries a Zacks Rank #2 (Buy), presents a more stable and financially sound investment opportunity at this stage. With solid revenue and operating cash flow generating capability, BWXT offers long-term growth opportunities, thanks to its mission-critical contracts with the U.S. Navy and Department of Energy and the production ramp-up of medical radioisotopes.

Oklo, a Zacks Rank #4 (Sell) stock at present, though rapidly expanding its footprint in the nuclear energy market, is still in the pre-revenue generation phase and has been generating losses until now. So, for investors seeking lower execution risk and a proven track record, BWX Technologies should be a more compelling choice.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.  

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This article originally published on Zacks Investment Research (zacks.com).

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