Nextpower or Eaton: Which Stock Has More Upside?

ETN: Eaton logo
ETN
Eaton

Eaton fell -5.8% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Nextpower gives you more. Nextpower (NXT) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Eaton (ETN) stock, suggesting you may be better off investing in NXT

  • NXT’s quarterly revenue growth was 33.9%, vs. ETN’s 10.1%.
  • In addition, its Last 12 Months revenue growth came in at 30.0%, ahead of ETN’s 8.2%.
  • NXT leads on profitability over both periods – LTM margin of 20.5% and 3-year average of 20.8%.

These differences become even clearer when you look at the financials side by side. The table highlights how ETN’s fundamentals stack up against those of NXT on growth, margins, momentum, and valuation multiples.

Trefis: ETN Stock Insights

Valuation & Performance Overview

  ETN NXT Preferred
     
Valuation      
P/EBIT Ratio 27.4 20.3 NXT
     
Revenue Growth      
Last Quarter 10.1% 33.9% NXT
Last 12 Months 8.2% 30.0% NXT
Last 3 Year Average 9.7% 25.5% NXT
     
Operating Margins      
Last 12 Months 19.0% 20.5% NXT
Last 3 Year Average 17.8% 20.8% NXT
     
Momentum      
Last 3 Year Return 108.0% 203.3% NXT

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ETN Revenue Comparison | NXT Revenue Comparison
See more margin details: ETN Operating Income Comparison | NXT Operating Income Comparison

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See detailed fundamentals on Buy or Sell ETN Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2021 2022 2023 2024 2025 2026 Total [1] Avg Best
Returns
ETN Return 47% -7% 56% 40% -3% 18% 242%   <===
NXT Return 54% -22% 138% 19% 241%    
S&P 500 Return 27% -19% 24% 23% 16% 1% 83%    
Monthly Win Rates [3]
ETN Win Rate 75% 25% 67% 75% 50% 100%   65%  
NXT Win Rate 55% 42% 50% 33%   45%  
S&P 500 Win Rate 75% 42% 67% 75% 67% 67%   65% <===
Max Drawdowns [4]
ETN Max Drawdown -4% -27% -3% -3% -25% 0%   -11%  
NXT Max Drawdown -6% -33% 0% 0%   -10%  
S&P 500 Max Drawdown -1% -25% -1% -2% -15% -1%   -7% <===

[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/3/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ETN Dip Buyer Analyses to see how the stock has fallen and recovered in the past.

Still not sure about ETN or NXT? Consider portfolio approach.

The Right Way To Invest Is Through Portfolios

Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.

Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.