Contrasting Ballard Power Systems (NASDAQ:BLDP) and Unitil (NYSE:UTL)

Ballard Power Systems (NASDAQ:BLDP) and Unitil (NYSE:UTL) are both small-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Ballard Power Systems has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Unitil has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ballard Power Systems and Unitil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ballard Power Systems	3	11	1	0	1.87
Unitil	0	5	0	0	2.00

Ballard Power Systems presently has a consensus price target of $3.59, indicating a potential downside of 13.97%. Unitil has a consensus price target of $56.50, indicating a potential upside of 8.67%. Given Unitil’s stronger consensus rating and higher possible upside, analysts clearly believe Unitil is more favorable than Ballard Power Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ballard Power Systems	-78.60%	-13.48%	-11.64%
Unitil	9.60%	9.89%	2.89%

Insider & Institutional Ownership

28.0% of Ballard Power Systems shares are held by institutional investors. Comparatively, 76.8% of Unitil shares are held by institutional investors. 0.2% of Ballard Power Systems shares are held by insiders. Comparatively, 2.2% of Unitil shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballard Power Systems	$99.40 million	12.65	-$90.91 million	($0.27)	-15.44
Unitil	$536.00 million	1.74	$50.20 million	$3.16	16.45

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

Summary

Unitil beats Ballard Power Systems on 11 of the 14 factors compared between the two stocks.

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.

About Unitil

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through two segments, Utility Electric Operations, Utility Gas Operations. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as electricity and natural gas in the greater Fitchburg area of north central Massachusetts. It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides real estate management services. It serves approximately 108,100 electric customers and 87,500 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.