Better Nuclear Energy Stock to Buy After the Sell-Off: Oklo vs. BWX Technologies
Electricity demand is rising due to artificial intelligence (AI), and nuclear energy is set to meet it. At least, if you look at the charts of nuclear power stocks last year, that’s what you would assume was the case. Now, not so much.
Nuclear power stocks have faltered in 2026, even though the AI infrastructure build-out continues. Oklo (OKLO -5.83%) is down 86% from highs, while BWX Technologies (BWXT -7.83%) is down 45%. Is either nuclear energy-related stock a buy after this sell-off? It is clear when you look closer at the numbers.
BWXT – BWX Technologies
$121.50-$10.32 (-7.83%)
NYSE · As of 4:00 PM ET 11/04/26
Military and commercial nuclear components
You may have never heard of BWX Technologies, but it has been a mainstay in the nuclear energy field for decades. It builds nuclear reactors for the U.S. Navy, powering aircraft carriers and submarines. These contracts have long lead times and span multiple decades, meaning BWX Technologies can generate reliable revenue from them for many years. It is also working on futuristic nuclear power technologies for the U.S., including space-based nuclear propulsion and microreactors.
On the commercial side, BWX has a durable business selling components to the nuclear power market in Canada and is trying to sell more components for small modular reactors (SMRs), already having contracts with GE Hitachi and other players, although it is still very early days for the segment. Commercial revenue grew 25% year over year to $314 million.
Overall, revenue grew 10% year over year in the third quarter to $953 million. It is expected to generate around $350 million in free cash flow this year, implying a price-to-free cash flow (P/FCF) ratio of 34x based on its current market cap. Next year, free cash flow is expected to be at a similar level, which is perhaps why BWX Technologies is down this year, but the long-term growth trajectory for its place in the nuclear power sector is rock solid.
Image source: Getty Images.
A start-up with little revenue
Speaking of SMRs, Oklo is a start-up trying to bring this technology to life. The company has raised billions of dollars to build a modern SMR business for power, fuel, and isotopes. It wants to have nuclear reactor facilities directly built for AI data centers.
Oklo does not have any reactors built today. In fact, it does not have a nuclear reactor design officially approved by the Nuclear Regulatory Commission (NRC). Without NRC approval, it will not be able to build actual nuclear reactors.
This puts the business many years away from full operations. It is working to produce nuclear fuel and isotopes, which may add some revenue to the business, but the core thesis centers on Oklo’s Aurora Powerhouse nuclear reactor, which it hopes to sell by the boatload in the years ahead to power AI data centers and other electricity needs in the United States.
Right now, Oklo’s revenue is basically zero. It will likely stay there for many years. Even if it gets approval from the NRC tomorrow, it will take years before a nuclear reactor is actually built and operational.
OKLO Revenue (TTM) data by YCharts
Which stock is the better buy?
Oklo’s stock has crashed this year, much more than BWX Technologies’. It has a market cap of $4.3 billion, compared with $12 billion for BWX Technologies.
Even though Oklo is now at a much lower price, BWX Technologies looks like a better buy because of its diversified bets across the nuclear supply chain. The military contracts will remain steady, and its forays into new commercial opportunities are potentially promising if SMRs truly are the future of the sector.
For this reason — along with the lack of revenue generation at Oklo — BWX Technologies is a better stock to buy on the nuclear energy sell-off.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.