Flux Power (OTCMKTS:FLUX) and FuelCell Energy (NASDAQ:FCEL) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Flux Power -136.55% N/A -221.23%
FuelCell Energy -36.18% -45.52% -12.45%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Flux Power and FuelCell Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flux Power 0 0 0 0 N/A
FuelCell Energy 0 1 2 0 2.67

FuelCell Energy has a consensus price target of $2.67, indicating a potential upside of 387.95%. Given FuelCell Energy’s higher possible upside, analysts plainly believe FuelCell Energy is more favorable than Flux Power.

Valuation and Earnings

This table compares Flux Power and FuelCell Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flux Power $4.12 million 17.09 -$6.96 million ($0.27) -5.56
FuelCell Energy $95.67 million 0.53 -$53.90 million ($1.11) -0.49

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

Institutional and Insider Ownership

21.8% of FuelCell Energy shares are owned by institutional investors. 71.2% of Flux Power shares are owned by insiders. Comparatively, 1.1% of FuelCell Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Flux Power has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Summary

FuelCell Energy beats Flux Power on 7 of the 13 factors compared between the two stocks.

Flux Power Company Profile

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, and sells rechargeable lithium-ion energy storage systems for industrial applications in the United States. Its products include battery cell management system (BMS) that provides cell balancing, monitoring, and error reporting functions for battery systems; and energy storage modules for industrial equipment, electrical vehicles, and governmental applications. The company also offers 24-volt onboard chargers and smart wall mounted chargers to interface with its BMS; and integrates lithium packs in various applications, including forklifts and related industrial equipment. In addition, it develops a suite of complementary technologies and products for its BMS products. The company's products are also used in airport ground support equipment. It sells its products directly to small companies and Fortune 500 companies, as well as through original equipment manufacturers, lift equipment dealers, battery distributors, and end-user. Flux Power Holdings, Inc. is headquartered in Vista, California.

FuelCell Energy Company Profile

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource power plants, a tri-generation distributed hydrogen configuration that generates electricity, heat, and hydrogen for commercial, industrial, government, and utility customers; and fuel cell carbon capture solution for coal or gas-fired power plants. It also develops solid oxide fuel cells for adjacent sub-megawatt applications to the markets for megawatt-class SureSource power plants, as well as energy storage applications. The company serves various markets, such as utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, and commercial and hospitality. It primarily operates in the United States, South Korea, England, Germany, Canada, and Spain. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.

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