Power One (NASDAQ: PWER) and FuelCell Energy (NASDAQ:FCEL) are both companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Power One and FuelCell Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power One 0 0 0 0 N/A
FuelCell Energy 0 4 3 0 2.43

FuelCell Energy has a consensus price target of $2.90, indicating a potential upside of 83.54%.

Profitability

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

Net Margins Return on Equity Return on Assets
Power One N/A N/A N/A
FuelCell Energy -78.60% -52.75% -16.97%

Institutional & Insider Ownership

14.7% of FuelCell Energy shares are held by institutional investors. 1.2% of FuelCell Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Power One and FuelCell Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Power One N/A N/A N/A $0.26 N/A
FuelCell Energy $108.25 million 1.02 -$50.95 million ($1.44) -1.10

Power One has higher revenue, but lower earnings than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than Power One, indicating that it is currently the more affordable of the two stocks.

Power One Company Profile

Power-One, Inc. (Power-One), is a designer and manufacturer of inverters for the renewable energy industry. It makes alternating current/direct current (AC/DC) and direct current/ direct current (DC/DC) power supplies, converters, and power management products for the servers, storage, networking, network power systems and industrial markets. The Company operates in two business segments: Renewable Energy Solutions segment and Power Solutions segment. Renewable Energy Solutions offers inverters and accessories for the photovoltaic/solar and wind markets. The Power Solutions segment represents the Company’s products for AC/DC, DC/DC and digital power conversion, including power conversion products for data centers, such as servers, storage and networking, as well as telecom and industrial power conversion products. In July 2013, Power-One Inc. was acquired by ABB Ltd.

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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