Ballard Power Systems (NASDAQ:BLDP) and Otter Tail (NASDAQ:OTTR) Critical Comparison

Otter Tail (NASDAQ:OTTR) and Ballard Power Systems (NASDAQ:BLDP) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Otter Tail has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Profitability

This table compares Otter Tail and Ballard Power Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otter Tail	21.48%	15.96%	7.46%
Ballard Power Systems	-132.80%	-17.89%	-15.43%

Valuation & Earnings

This table compares Otter Tail and Ballard Power Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otter Tail	$1.33 billion	2.73	$301.66 million	$6.63	13.08
Ballard Power Systems	$69.73 million	11.39	-$324.24 million	($0.40)	-6.60

Otter Tail has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Otter Tail, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Otter Tail and Ballard Power Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otter Tail	0	1	2	0	2.67
Ballard Power Systems	4	12	0	0	1.75

Otter Tail currently has a consensus price target of $83.00, suggesting a potential downside of 4.30%. Ballard Power Systems has a consensus price target of $2.33, suggesting a potential downside of 11.74%. Given Otter Tail’s stronger consensus rating and higher possible upside, equities analysts plainly believe Otter Tail is more favorable than Ballard Power Systems.

Insider and Institutional Ownership

61.3% of Otter Tail shares are held by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are held by institutional investors. 1.9% of Otter Tail shares are held by company insiders. Comparatively, 0.2% of Ballard Power Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Otter Tail beats Ballard Power Systems on 12 of the 14 factors compared between the two stocks.

About Otter Tail

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas. It serves approximately residential, commercial, and industrial customers. The Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components and extruded raw material stock for the recreational vehicle, lawn and garden, agricultural, construction, and industrial and energy equipment end markets. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

About Ballard Power Systems

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products. The company offers its products for power product comprising for bus, truck, rail, marine, stationary, and emerging market, such as material handling, off-road, and other applications. It also engages in the delivery of services, including technology solutions, after sales services, and training; and provision of engineering services, product and systems integration services, and related technology transfer for a variety of PEM fuel cell applications. It operates in the United States, Germany, Canada, China, Poland, the United Kingdom, the Netherlands, France, Denmark, Belgium, India, Taiwan, Spain, Norway, Australia, Japan, and internationally. The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada.