Tecogen (NASDAQ: TGEN) and FuelCell Energy (NASDAQ:FCEL) are both small-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

Tecogen has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Insider & Institutional Ownership

8.4% of Tecogen shares are owned by institutional investors. Comparatively, 14.1% of FuelCell Energy shares are owned by institutional investors. 23.1% of Tecogen shares are owned by insiders. Comparatively, 1.7% of FuelCell Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Tecogen and FuelCell Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tecogen 0 1 3 0 2.75
FuelCell Energy 0 3 1 0 2.25

Tecogen currently has a consensus target price of $14.50, suggesting a potential upside of 373.86%. FuelCell Energy has a consensus target price of $2.00, suggesting a potential upside of 35.14%. Given Tecogen’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tecogen is more favorable than FuelCell Energy.

Profitability

This table compares Tecogen and FuelCell Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tecogen -0.13% -0.18% -0.11%
FuelCell Energy -64.84% -54.62% -16.39%

Valuation and Earnings

This table compares Tecogen and FuelCell Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tecogen $28.16 million 2.69 $502,228.00 N/A N/A
FuelCell Energy $83.61 million 1.05 -$36.29 million ($1.51) -0.98

Tecogen has higher revenue, but lower earnings than FuelCell Energy.

Summary

Tecogen beats FuelCell Energy on 9 of the 12 factors compared between the two stocks.

Tecogen Company Profile

Tecogen Inc. designs, manufactures, sells and maintains cogeneration products, including combined heat and power (CHP), air conditioning systems and water heaters for residential, commercial, recreational and industrial use. The Company is engaged in the business of manufacturing and supporting CHP products based on engines fueled by natural gas. The Company manufactures over three types of CHP products, such as cogeneration units that supply electricity and hot water, chillers that provide air-conditioning and hot water, and water heaters. Its commercial product line includes the InVerde, InVerde e+ and TECOGEN cogeneration units; TECOCHILL chillers; Ilios high-efficiency water heaters, and Ultera emissions control technology. Its customers include hospitals and nursing homes, hotels and motels, office and retail buildings, and military installations. Its cogeneration systems and chillers use the engine, the TecoDrive 7400 model.

FuelCell Energy Company Profile

Fuelcell Energy, Inc. delivers fuel cell power solutions. The Company is engaged in designing, manufacturing, installing, operating and maintaining fuel cell power solutions. The Company also provides turnkey power generation solutions to the customers, including power plant installation, operations and maintenance. The Company’s segment is fuel cell power plant production and research. The Company offers its services to various sectors, including utility companies, municipalities, universities, government entities and a range of industrial and commercial enterprises. The Company, by utilizing its Direct FuelCell (DFC) plants, is commercializing a tri-generation distributed hydrogen configuration that generates electricity, heat and hydrogen for industrial and/or transportation uses, as well as a fuel cell carbon capture solution for coal or gas-fired power plants. The Company is also developing and commercializing solid oxide fuel cell (SOFC) plants for sub-megawatt applications.

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