NuScale vs. Oklo: Which Nuclear Stock is the Better Buy Now?

NuScale (NYSE: SMR) and Oklo (NYSE: OKLO) are both developing next-gen nuclear reactors. NuScale is creating small modular reactors (SMRs), while Oklo is developing even smaller microreactors. Both types of reactors produce less power than their conventional counterparts, but they can be deployed in remote and off-grid areas.

Which stock is a better buy?

Shares of NuScale and Oklo have declined about 80% and 70%, respectively, over the past two months. While their technology sounds promising, neither company has deployed a single commercial reactor yet. But if I had to choose one over the other, I'd pick Oklo.

Oklo plans to deploy its first Aurora Powerhouse microreactors in 2027 or 2028. NuScale doesn't expect its first commercial reactors to come online until the early 2030s.

Oklo recycles its uranium pellets in a closed loop, so its microreactors are only refueled every 10 years. NuScale's SMRs must be refueled every 21 months. Oklo also intends to directly manage its own plants. NuScale only plans to sell its SMRs to larger power plants.

Both stocks will remain under pressure in this challenging macro environment. But over the next few years, I expect Oklo to outperform NuScale because it has clearer near-term catalysts and more ambitious plans to capitalize on the resurgent nuclear energy market.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.