Critical Analysis: Ocean Power Technologies (NASDAQ:OPTT) & FuelCell Energy (NASDAQ:FCEL)

FuelCell Energy (NASDAQ:FCELGet Free Report) and Ocean Power Technologies (NASDAQ:OPTTGet Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

42.8% of FuelCell Energy shares are held by institutional investors. Comparatively, 11.9% of Ocean Power Technologies shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by company insiders. Comparatively, 1.3% of Ocean Power Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares FuelCell Energy and Ocean Power Technologies”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FuelCell Energy $158.16 million 9.15 -$187.90 million ($3.43) -5.28
Ocean Power Technologies $3.74 million 152.53 -$27.48 million ($0.22) -9.59

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

Profitability

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

Net Margins Return on Equity Return on Assets
FuelCell Energy -113.60% -16.85% -12.31%
Ocean Power Technologies -304.91% -97.03% -72.36%

Risk and Volatility

FuelCell Energy has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Ocean Power Technologies has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FuelCell Energy and Ocean Power Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FuelCell Energy 2 4 5 0 2.27
Ocean Power Technologies 0 1 1 1 3.00

FuelCell Energy currently has a consensus price target of $21.75, indicating a potential upside of 20.10%. Ocean Power Technologies has a consensus price target of $45.00, indicating a potential upside of 2,032.70%. Given Ocean Power Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Ocean Power Technologies is more favorable than FuelCell Energy.

Summary

FuelCell Energy beats Ocean Power Technologies on 8 of the 15 factors compared between the two stocks.

About FuelCell Energy

(Get Free Report)

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.

About Ocean Power Technologies

(Get Free Report)

Ocean Power Technologies, Inc. develops and commercializes proprietary power platforms that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Australia, and Asia. It offers PB3 PowerBuoy that generates power for use independent of the power grid in offshore locations. The company also provides Next Generation PowerBuoy; subsea battery systems; and software, controls, sensors, integration services, and marine installation services. In addition, it offers Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services. Further, the company provides offshore data collection, integration, analytics, and real time communication for various applications. It serves public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

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