Can Nextpower Outrun Eaton in the Next Rally?
Eaton surged 17% during the past Month. 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 13.1%.
- In addition, its Last 12 Months revenue growth came in at 30.0%, ahead of ETN’s 10.3%.
- 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.
Valuation & Performance Overview
| ETN | NXT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 31.1 | 24.6 | NXT |
| Revenue Growth | |||
| Last Quarter | 13.1% | 33.9% | NXT |
| Last 12 Months | 10.3% | 30.0% | NXT |
| Last 3 Year Average | 9.8% | 25.5% | NXT |
| Operating Margins | |||
| Last 12 Months | 19.0% | 20.5% | NXT |
| Last 3 Year Average | 18.1% | 20.8% | NXT |
| Momentum | |||
| Last 3 Year Return | 158.6% | 281.3% | 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.
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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% | 31% | 279% | ||
| NXT Return | – | – | 54% | -22% | 138% | 41% | 302% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 91% | ||
| Monthly Win Rates [3] | |||||||||
| ETN Win Rate | 75% | 25% | 67% | 75% | 50% | 75% | 61% | ||
| NXT Win Rate | – | – | 55% | 42% | 50% | 75% | 55% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| 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% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/27/2026 (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.
Smart Investing Begins With Portfolios
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
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.