Comparing China Energy Recovery (OTCMKTS:CGYV) and FuelCell Energy (NASDAQ:FCEL)

China Energy Recovery (OTCMKTS:CGYV) and FuelCell Energy (NASDAQ:FCEL) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Energy Recovery	N/A	N/A	N/A
FuelCell Energy	-118.80%	-18.85%	-13.26%

Analyst Recommendations

This is a summary of current ratings and target prices for China Energy Recovery and FuelCell Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Energy Recovery	0	0	0	0	0.00
FuelCell Energy	1	6	0	0	1.86

FuelCell Energy has a consensus target price of $9.06, suggesting a potential upside of 22.22%. Given FuelCell Energy’s stronger consensus rating and higher probable upside, analysts clearly believe FuelCell Energy is more favorable than China Energy Recovery.

Earnings and Valuation

This table compares China Energy Recovery and FuelCell Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Energy Recovery	N/A	N/A	N/A	N/A	N/A
FuelCell Energy	$158.16 million	2.24	-$187.90 million	($7.84)	-0.95

China Energy Recovery has higher earnings, but lower revenue than FuelCell Energy.

Institutional & Insider Ownership

42.8% of FuelCell Energy shares are owned by institutional investors. 37.7% of China Energy Recovery shares are owned by company insiders. Comparatively, 0.4% of FuelCell Energy shares are owned 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.

Risk and Volatility

China Energy Recovery has a beta of -1.09, suggesting that its share price is 209% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

FuelCell Energy beats China Energy Recovery on 5 of the 9 factors compared between the two stocks.

About China Energy Recovery

China Energy Recovery, Inc. designs, manufactures, installs, and services waste heat recovery systems in China. The company’s energy recovery systems capture industrial waste energy to produce electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate saleable emissions credits. It serves petrochemical, paper manufacturing, refining/power generation, coke processing, cement, and steel industries. The company was incorporated in 1998 and is headquartered in Shanghai, China.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.