FuelCell Energy (NASDAQ: FCEL) and Tecogen (NASDAQ:TGEN) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FuelCell Energy and Tecogen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FuelCell Energy 0 3 1 0 2.25
Tecogen 0 1 3 0 2.75

FuelCell Energy presently has a consensus target price of $2.00, suggesting a potential upside of 35.14%. Tecogen has a consensus target price of $14.50, suggesting a potential upside of 373.86%. Given Tecogen’s stronger consensus rating and higher probable upside, analysts clearly believe Tecogen is more favorable than FuelCell Energy.

Earnings & Valuation

This table compares FuelCell Energy and Tecogen’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FuelCell Energy $83.61 million 1.05 -$36.29 million ($1.51) -0.98
Tecogen $28.16 million 2.69 $502,228.00 N/A N/A

Tecogen has higher revenue, but lower earnings than FuelCell Energy.

Risk and Volatility

FuelCell Energy has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Tecogen has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

14.1% of FuelCell Energy shares are owned by institutional investors. Comparatively, 8.4% of Tecogen shares are owned by institutional investors. 1.7% of FuelCell Energy shares are owned by company insiders. Comparatively, 23.1% of Tecogen shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
FuelCell Energy -60.75% -44.42% -14.99%
Tecogen -0.13% -0.18% -0.11%

Summary

Tecogen beats FuelCell Energy on 9 of the 12 factors compared between the two stocks.

About FuelCell Energy

Fuelcell Energy, Inc. delivers fuel cell power solutions. The Company is engaged in designing, manufacturing, installing, operating and maintaining fuel cell power solutions. The Company also provides turnkey power generation solutions to the customers, including power plant installation, operations and maintenance. The Company’s segment is fuel cell power plant production and research. The Company offers its services to various sectors, including utility companies, municipalities, universities, government entities and a range of industrial and commercial enterprises. The Company, by utilizing its Direct FuelCell (DFC) plants, is commercializing a tri-generation distributed hydrogen configuration that generates electricity, heat and hydrogen for industrial and/or transportation uses, as well as a fuel cell carbon capture solution for coal or gas-fired power plants. The Company is also developing and commercializing solid oxide fuel cell (SOFC) plants for sub-megawatt applications.

About Tecogen

Tecogen Inc. designs, manufactures, sells and maintains cogeneration products, including combined heat and power (CHP), air conditioning systems and water heaters for residential, commercial, recreational and industrial use. The Company is engaged in the business of manufacturing and supporting CHP products based on engines fueled by natural gas. The Company manufactures over three types of CHP products, such as cogeneration units that supply electricity and hot water, chillers that provide air-conditioning and hot water, and water heaters. Its commercial product line includes the InVerde, InVerde e+ and TECOGEN cogeneration units; TECOCHILL chillers; Ilios high-efficiency water heaters, and Ultera emissions control technology. Its customers include hospitals and nursing homes, hotels and motels, office and retail buildings, and military installations. Its cogeneration systems and chillers use the engine, the TecoDrive 7400 model.

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