FuelCell Energy (NASDAQ: FCEL) and JA Solar Holdings, Co. (NASDAQ:JASO) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares FuelCell Energy and JA Solar Holdings, Co.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FuelCell Energy $83.61 million 1.14 -$36.29 million ($1.51) -1.06
JA Solar Holdings, Co. $2.67 billion 0.12 $245.30 million $1.56 4.40

JA Solar Holdings, Co. has higher revenue and earnings than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than JA Solar Holdings, Co., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FuelCell Energy and JA Solar Holdings, Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FuelCell Energy -60.75% -44.42% -14.99%
JA Solar Holdings, Co. 2.89% 7.90% 2.61%

Institutional and Insider Ownership

14.4% of FuelCell Energy shares are held by institutional investors. Comparatively, 26.0% of JA Solar Holdings, Co. shares are held by institutional investors. 1.7% of FuelCell Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for FuelCell Energy and JA Solar Holdings, Co., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FuelCell Energy 0 3 1 0 2.25
JA Solar Holdings, Co. 1 2 0 0 1.67

FuelCell Energy presently has a consensus target price of $2.00, suggesting a potential upside of 25.00%. JA Solar Holdings, Co. has a consensus target price of $6.33, suggesting a potential downside of 7.81%. Given FuelCell Energy’s stronger consensus rating and higher probable upside, analysts clearly believe FuelCell Energy is more favorable than JA Solar Holdings, Co..

Risk & Volatility

FuelCell Energy has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, JA Solar Holdings, Co. has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Summary

JA Solar Holdings, Co. beats FuelCell Energy on 7 of the 13 factors compared between the two stocks.

About FuelCell Energy

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.

About JA Solar Holdings, Co.

JA Solar Holdings Co., Ltd. is a holding company. The Company designs, develops, manufactures and sells solar power products that convert sunlight into electricity for a range of uses. The Company is engaged in manufacturing and selling solar modules, as well as silicon wafer manufacturing. The Company operates through two segments, including manufacturing and solar projects. The manufacturing segment includes design, development and manufacture of photovoltaic (PV) products. The solar projects segment includes downstream solar projects, which are involved in electricity generation. The Company’s principal products consist of both monocrystalline and multicrystalline solar cells and solar modules. The Company sells its products primarily under JA Solar brand name, and also produces original equipment for manufacturers or customers. The Company is also engaged in the provision of solar product processing services and project development services.

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