FuelCell Energy (NASDAQ:FCEL – Get Free Report) and China BAK Battery (NASDAQ:CBAT – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Institutional and Insider Ownership
42.8% of FuelCell Energy shares are held by institutional investors. Comparatively, 2.0% of China BAK Battery shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by insiders. Comparatively, 0.8% of China BAK Battery shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for FuelCell Energy and China BAK Battery, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FuelCell Energy | 2 | 5 | 6 | 0 | 2.31 |
| China BAK Battery | 1 | 0 | 0 | 0 | 1.00 |
FuelCell Energy presently has a consensus target price of $21.80, suggesting a potential upside of 79.06%. Given FuelCell Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe FuelCell Energy is more favorable than China BAK Battery.
Profitability
This table compares FuelCell Energy and China BAK Battery’s 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% |
| China BAK Battery | -7.43% | -15.32% | -4.23% |
Risk & Volatility
FuelCell Energy has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500. Comparatively, China BAK Battery has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares FuelCell Energy and China BAK Battery”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FuelCell Energy | $154.14 million | 6.32 | -$187.90 million | ($3.43) | -3.55 |
| China BAK Battery | $195.19 million | 0.44 | -$9.38 million | ($0.18) | -5.39 |
China BAK Battery has higher revenue and earnings than FuelCell Energy. China BAK Battery is trading at a lower price-to-earnings ratio than FuelCell Energy, indicating that it is currently the more affordable of the two stocks.
Summary
FuelCell Energy beats China BAK Battery on 8 of the 14 factors compared between the two stocks.
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.
About China BAK Battery
CBAK Energy Technology, Inc., together with its subsidiaries, manufacture, commercialization, and distribution of lithium ion high power rechargeable batteries in Mainland China, the United States, Europe, and internationally. The company operates in two segments, CBAK and Hitrans. Its lithium batteries are used in various applications, including electric vehicles, such as electric cars, electric buses, and hybrid electric cars and buses; light electric vehicles, such as electric bicycles, electric motors, electric tricycles, and smaller-sized electric cars; and electric tools, energy storage, uninterruptible power supply, and other high power applications, as well as cordless power tools. The company also develops and manufactures NCM precursor and cathode materials. The company was formerly known as China BAK Battery, Inc. and changed its name to CBAK Energy Technology, Inc. in January 2017. CBAK Energy Technology, Inc. is based in Dalian, China.
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