Which is the best investment: Plug Power or Bloom Energy?
PPower pod (NASDAQ: PLUG) and Flowering energy (NYSE: BE) are competitors in the hydrogen fuel cell industry. But with each focused on growing in different niches, we asked ourselves what was the best investment right now?
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Plug Power: Bull vs Bear arguments
Plug Power created the world’s first commercially viable market for hydrogen fuel cell (HFC) technology. As a result, the company has deployed more fuel cell systems for electric mobility than any of its other competitors. It supplies fuel cell systems to big names such as Amazon, Walmart, Nike, and Home deposit.
Plug Power dives into the world of buses and joins forces with BAE systems, working together to provide “heavy-duty transit bus OEMs” with zero-emission powertrain systems. Plug Power also recently signed an agreement with the French car dealership “Groupe Renault” with which they will help build a fleet of hydrogen delivery vans and buses.
Additionally, the company recently announced where its next three hydrogen plants will be based: Georgia, Pennsylvania and New York. The work plan is to have the first two of them operational by the end of 2022, joining the existing Tennessee plant in a new green hydrogen network.
In the last quarter, Plug achieved net sales of just under $ 72 million. While this fell short of targets, it is still up 76% year over year (year over year). Unfortunately, the net loss per share stood at $ 0.12, unchanged from the same period last year. This is a recurring theme as the company is notoriously unprofitable, having only made a quarterly profit once in the past decade. In addition, having finished last year with $ 780 million in debt, the company is particularly vulnerable.
The company also faces increased competition from Fuel cell energy, Ballard Power Systems, and Flowering energy.
Bloom Energy: Bull vs Bear arguments
Bloom Energy (NYSE: BE) is also a hydrogen fuel cell company. But Bloom produces components for clean energy production in large companies. His many clients include Yahoo, IBM, Target, Walmart, and Morgan stanley. Indeed, its customers are so varied and diverse that it is guaranteed to generate income during times of market uncertainty.
Bloom has become a popular choice among alternative energy investors, as the company’s stock price climbed 280% in 2020, from just under $ 8 to around $ 30 in 2020. Currently, it’s just over $ 20, up 23% year-over-year.
Bloom Energy has also entered into a financial partnership with NextEra A year ago, NextEra bought them a six-megawatt fuel project. In addition, the company worked with SK Engineering and helped build two clean energy facilities in South Korea, both powered by hydrogen fuel cells. This shows that the company can continue to attract customers and investments from all over the world.
In its final quarter, the company recorded a loss of $ 0.07 per share. This is an impressive year-over-year improvement as the first quarter of 2020 saw a loss of $ 0.34 per share. Revenue for the quarter was $ 194 million, up 23% year-over-year. Bloom Energy said it is on its way to becoming a company that generates over $ 1 billion in revenue per year.
Bloom has managed to continually grow its top line, however, it is only in this last quarter that the bottom line has seen any real marked improvement. Bloom has generated a loss every year because he is forced to spend a lot on research and development. While this will ultimately reduce the overall cost of its systems, it could be a long process before any real benefits are seen.
So which stock is a better watch right now?
Both of these companies are attractive investments, although they are not suitable for risk averse investors. Both have technology that is still in the early stages of wider acceptance, which means costs are going to stay high, preventing results from improving. This will be frustrating for many investors and as such the prices of both stocks could experience volatility in the future.
However, of the two, Plug Power is more likely to make waves in the alternative energy market, especially as it grows in the bus industry. Plug Power might be the best watch right now.
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