Analyzing Ballard Power Systems (NASDAQ:BLDP) & PPL (NYSE:PPL)

Ballard Power Systems (NASDAQ:BLDPGet Free Report) and PPL (NYSE:PPLGet Free Report) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

28.0% of Ballard Power Systems shares are owned by institutional investors. Comparatively, 77.0% of PPL shares are owned by institutional investors. 0.2% of Ballard Power Systems shares are owned by insiders. Comparatively, 0.3% of PPL shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ballard Power Systems and PPL, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ballard Power Systems 5 10 0 1 1.81
PPL 0 2 7 2 3.00

Ballard Power Systems currently has a consensus target price of $2.00, indicating a potential downside of 41.73%. PPL has a consensus target price of $40.50, indicating a potential upside of 8.45%. Given PPL’s stronger consensus rating and higher possible upside, analysts clearly believe PPL is more favorable than Ballard Power Systems.

Profitability

This table compares Ballard Power Systems and PPL’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ballard Power Systems -409.35% -21.52% -18.62%
PPL 11.22% 8.81% 3.02%

Volatility & Risk

Ballard Power Systems has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, PPL has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ballard Power Systems and PPL”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ballard Power Systems $69.73 million 14.83 -$324.24 million ($0.99) -3.47
PPL $8.46 billion 3.26 $888.00 million $1.34 27.87

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

Summary

PPL beats Ballard Power Systems on 13 of the 15 factors compared between the two stocks.

About Ballard Power Systems

(Get Free Report)

Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products. The company offers its products for power product comprising for bus, truck, rail, marine, stationary, and emerging market, such as material handling, off-road, and other applications. It also engages in the delivery of services, including technology solutions, after sales services, and training; and provision of engineering services, product and systems integration services, and related technology transfer for a variety of PEM fuel cell applications. It operates in the United States, Germany, Canada, China, Poland, the United Kingdom, the Netherlands, France, Denmark, Belgium, India, Taiwan, Spain, Norway, Australia, Japan, and internationally. The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada.

About PPL

(Get Free Report)

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

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