Ballard Power Systems (NASDAQ: BLDP) and Hanwha Q CELLS Co. (NASDAQ:HQCL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Institutional and Insider Ownership

2.8% of Ballard Power Systems shares are owned by institutional investors. Comparatively, 0.7% of Hanwha Q CELLS Co. shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ballard Power Systems and Hanwha Q CELLS Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ballard Power Systems -9.34% -6.74% -4.46%
Hanwha Q CELLS Co. 2.30% 11.55% 2.26%

Valuation and Earnings

This table compares Ballard Power Systems and Hanwha Q CELLS Co.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ballard Power Systems $100.50 million 5.54 -$2.14 million ($0.07) -45.14
Hanwha Q CELLS Co. $2.28 billion N/A $200.30 million $0.62 11.92

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

Risk & Volatility

Ballard Power Systems has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Hanwha Q CELLS Co. has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ballard Power Systems and Hanwha Q CELLS Co., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ballard Power Systems 0 2 2 0 2.50
Hanwha Q CELLS Co. 0 1 0 0 2.00

Ballard Power Systems currently has a consensus price target of $3.25, indicating a potential upside of 2.85%. Hanwha Q CELLS Co. has a consensus price target of $7.00, indicating a potential downside of 5.28%. Given Ballard Power Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Ballard Power Systems is more favorable than Hanwha Q CELLS Co..

Summary

Hanwha Q CELLS Co. beats Ballard Power Systems on 6 of the 11 factors compared between the two stocks.

Ballard Power Systems Company Profile

Ballard Power Systems Inc. is engaged in the design, development, manufacture, sale and service of proton exchange membrane (PEM) fuel cell products for a range of applications, focusing on the power product markets of heavy-duty motive (consisting of bus and tram applications), portable power, material handling and backup power, as well as the delivery of technology solutions, including engineering services, technology transfer and the license and sale of its intellectual property portfolio and fundamental knowledge for a range of fuel cell applications. As of December 31, 2016, the Company provided products in four product classes, such as Fuel cell stacks, Fuel cell modules, Fuel cell systems and Power management systems. The Company provides FCgen and FCveloCity fuel cell stacks to original equipment manufacturer (OEM) customers and system integrators that use the stacks to produce fuel cell systems for power solutions.

Hanwha Q CELLS Co. Company Profile

Hanwha Q CELLS Co., Ltd., formerly Hanwha SolarOne Co., Ltd., is a global solar energy company engaged in the manufacturing of solar modules, and the development and management of downstream solar farms. It manufactures a range of photo voltaic (PV) cells and PV modules at its manufacturing facilities in China and Malaysia using manufacturing process technologies, including those developed at its research and development facilities in Germany. It also engages in PV downstream businesses, which include developing solar power projects and providing engineering, procurement and construction services, and operation and management services. It develops and builds solar power projects incorporating its PV modules to sells them to third-party purchasers upon completion. Its principal products include PV modules, PV cells, silicon ingots and silicon wafers. It sells a range of PV modules, ranging from 250 watts to 340 watts in power output specification.

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