Hydrogenics (NASDAQ: HYGSD) and ABB (NYSE:ABB) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hydrogenics and ABB, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hydrogenics 0 0 0 0 N/A
ABB 2 5 5 0 2.25

ABB has a consensus price target of $23.00, suggesting a potential downside of 1.33%.

Dividends

ABB pays an annual dividend of $0.73 per share and has a dividend yield of 3.1%. Hydrogenics does not pay a dividend. ABB pays out 67.6% of its earnings in the form of a dividend. ABB has raised its dividend for 5 consecutive years.

Insider and Institutional Ownership

4.1% of ABB shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hydrogenics and ABB’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hydrogenics N/A N/A N/A N/A N/A
ABB $33.56 billion 1.48 $4.26 billion $1.08 21.58

ABB has higher revenue and earnings than Hydrogenics.

Profitability

This table compares Hydrogenics and ABB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hydrogenics -76.69% -144.08% -35.99%
ABB 6.87% 18.62% 6.55%

Summary

ABB beats Hydrogenics on 8 of the 9 factors compared between the two stocks.

Hydrogenics Company Profile

Hydrogenics Corp is a Canada-based firm, which designs and manufactures hydrogen generation products based on water electrolysis technology, and fuel cell products based on proton exchange membrane (PEM) technology. The Company’s segments are Onsite Generation and Power Systems. The OnSite Generation segment is based in Oevel, Belgium and develops products for industrial gas, hydrogen fueling and renewable energy storage markets. The Power business segment is based in Mississauga, Canada, with a satellite facility in Gladbeck, Germany. The Company’s products include HySTAT hydrogen generation equipment and HyPM fuel cell products. It has facilities in Mississauga, Ontario, Canada; Oevel-Westerlo, Belgium, and Gladbeck, Germany. It also has sales and service offices in Eastern Europe and North America. The Company has operations in Belgium, Canada and Germany with satellite offices in the United States and branch offices in Russia and Indonesia. Its products are sold around the world.

ABB Company Profile

ABB Ltd (ABB) is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. It is engaged in serving customers in utilities, industry and transport and infrastructure. The Electrification Products segment manufactures and sells products and services including low and medium-voltage switchgear, breakers, switches and control products. The Robotics and Motion segment manufactures and sells motors, generators, variable speed drives and robots and robotics. The Industrial Automation segment develops and sells control and plant optimization systems, and automation products and solutions. The Power Grids segment supplies power and automation products, systems, and service and software solutions.

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