Eversource Energy (NYSE:ES – Get Free Report) and Ballard Power Systems (NASDAQ:BLDP – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are owned by institutional investors. 0.4% of Eversource Energy shares are owned by insiders. Comparatively, 0.2% of Ballard Power Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Eversource Energy and Ballard Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eversource Energy | 12.49% | 11.18% | 2.87% |
| Ballard Power Systems | -91.50% | -14.62% | -12.60% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eversource Energy | $13.55 billion | 1.93 | $1.69 billion | $4.57 | 15.22 |
| Ballard Power Systems | $99.40 million | 7.50 | -$90.91 million | ($0.30) | -8.27 |
Eversource Energy has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Eversource Energy has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Eversource Energy and Ballard Power Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eversource Energy | 3 | 5 | 3 | 0 | 2.00 |
| Ballard Power Systems | 4 | 10 | 0 | 0 | 1.71 |
Eversource Energy currently has a consensus price target of $74.30, suggesting a potential upside of 6.80%. Ballard Power Systems has a consensus price target of $2.41, suggesting a potential downside of 2.72%. Given Eversource Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Eversource Energy is more favorable than Ballard Power Systems.
Summary
Eversource Energy beats Ballard Power Systems on 12 of the 14 factors compared between the two stocks.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
About Ballard Power Systems
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.
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