Comparing Bloom Energy (NYSE:BE) & Eaton (NYSE:ETN)

Eaton (NYSE:ETN) and Bloom Energy (NYSE:BE) are both large-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Eaton and Bloom Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eaton	0	4	13	3	2.95
Bloom Energy	1	12	10	3	2.58

Eaton presently has a consensus price target of $442.00, suggesting a potential upside of 9.80%. Bloom Energy has a consensus price target of $248.05, suggesting a potential upside of 18.47%. Given Bloom Energy’s higher possible upside, analysts clearly believe Bloom Energy is more favorable than Eaton.

Valuation and Earnings

This table compares Eaton and Bloom Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eaton	$27.45 billion	5.70	$4.09 billion	$9.83	40.95
Bloom Energy	$2.02 billion	30.47	-$88.43 million	$0.75	279.16

Eaton has higher revenue and earnings than Bloom Energy. Eaton is trading at a lower price-to-earnings ratio than Bloom Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eaton and Bloom Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eaton	12.75%	24.58%	9.98%
Bloom Energy	7.87%	35.45%	8.30%

Risk and Volatility

Eaton has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Bloom Energy has a beta of 3.79, meaning that its stock price is 279% more volatile than the S&P 500.

Insider and Institutional Ownership

83.0% of Eaton shares are held by institutional investors. Comparatively, 77.0% of Bloom Energy shares are held by institutional investors. 0.1% of Eaton shares are held by company insiders. Comparatively, 3.0% of Bloom Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Eaton beats Bloom Energy on 8 of the 14 factors compared between the two stocks.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

About Bloom Energy

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. The company offers Bloom Energy Server, a solid oxide technology that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels into electricity through an electrochemical process without combustion. It sells its products through direct and indirect sales channels to utilities, data centers, agriculture, retail, hospitals, higher education, biotech, and manufacturing industries. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.