FirstEnergy (NYSE:FE) & Ballard Power Systems (NASDAQ:BLDP) Critical Contrast

FirstEnergy (NYSE:FEGet Free Report) and Ballard Power Systems (NASDAQ:BLDPGet Free Report) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares FirstEnergy and Ballard Power Systems”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstEnergy $15.09 billion 1.92 $1.02 billion $1.76 28.47
Ballard Power Systems $99.37 million 8.98 -$90.91 million ($0.30) -9.87

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

Profitability

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

Net Margins Return on Equity Return on Assets
FirstEnergy 6.76% 10.50% 2.69%
Ballard Power Systems -91.50% -14.62% -12.60%

Risk & Volatility

FirstEnergy has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FirstEnergy and Ballard Power Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstEnergy 0 7 8 0 2.53
Ballard Power Systems 3 10 0 0 1.77

FirstEnergy presently has a consensus target price of $50.57, indicating a potential upside of 0.93%. Ballard Power Systems has a consensus target price of $2.69, indicating a potential downside of 9.27%. Given FirstEnergy’s stronger consensus rating and higher probable upside, research analysts clearly believe FirstEnergy is more favorable than Ballard Power Systems.

Institutional & Insider Ownership

89.4% of FirstEnergy shares are held by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are held by institutional investors. 0.1% of FirstEnergy 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

FirstEnergy beats Ballard Power Systems on 11 of the 14 factors compared between the two stocks.

About FirstEnergy

(Get Free Report)

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

About Ballard Power Systems

(Get Free Report)

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.

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