Which stocks will make you rich?

• NuScale Power and Nano Nuclear Energy are both early-stage companies looking to capitalize on nuclear power as a renewable, clean, scalable energy source.

• Both companies are in the business of developing small-scale nuclear reactors.

• Both NuScale and Nano have a long road to commercialization and profitability.

• 10 Stocks We Like More Than NuScale Power

In recent years, nuclear power has experienced a resurgence. Around the world, governments and corporate stakeholders are increasingly looking to nuclear power as a cleaner, more scalable energy source than past alternatives. Added to this resurgence is the growing need for energy to meet the demands of artificial intelligence (AI) data centers, sparking a huge interest in nuclear power generated by small-scale nuclear reactors.

All of these increased speculation in stocks NuScale Power (NYSE: SMR ) and Nano nuclear energy (NASDAQ: NNE ). Both stocks went on a bull run last year, but in recent months, each has experienced a pullback. Volatility is the product of speculation.

Now the question arises, between these two nuclear energy stocks, which one has the better opportunity?

Both NuScale and Nano Nuclear Energy are known as Small Modular Reactor (SMR) businesses. The US Department of Energy notes that SMRs have many cost and efficiency advantages.

NuScale is focused on developing permanently installed SMRs. Nano’s specialty is the microreactor, which provides more flexibility and modularity for end users. Both companies are still in their early stages.

Investors are evaluating each company based on future potential rather than current results. While Nano may be the “smaller” of the two, that means the company has a greater amount of potential upside.

Currently, NuScale’s market cap is around $6 billion, while Nano’s market cap is around $1.75 billion. At first, this might suggest that Nano has more long-term upside potential. While this is possible, it’s also possible that Nano’s low market cap reflects greater uncertainty about its future success.

After all, NuScale already has regulatory approval for its reactors and has entered the commercialization phase. Last year, revenue came in at $40 million, with sell-side analysts estimating that sales could more than triple this year.

Barring some game-changing regulatory or commercial partnership news from Nano, consider NuScale Power the more established of these nuclear start-ups and the stronger choice from a risk/reward perspective.