Critical Contrast: Plug Power (NASDAQ:PLUG) & Hubbell (NYSE:HUBB)

Hubbell (NYSE:HUBB) and Plug Power (NASDAQ:PLUG) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Earnings & Valuation

This table compares Hubbell and Plug Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hubbell	$5.84 billion	3.88	$887.10 million	$17.06	25.19
Plug Power	$709.92 million	2.85	-$1.63 billion	($1.26)	-1.15

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Hubbell and Plug Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hubbell	0	5	6	0	2.55
Plug Power	3	7	5	1	2.25

Hubbell presently has a consensus price target of $546.00, indicating a potential upside of 27.05%. Plug Power has a consensus price target of $3.40, indicating a potential upside of 134.80%. Given Plug Power’s higher probable upside, analysts plainly believe Plug Power is more favorable than Hubbell.

Risk and Volatility

Hubbell has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Plug Power has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500.

Insider and Institutional Ownership

88.2% of Hubbell shares are owned by institutional investors. Comparatively, 43.5% of Plug Power shares are owned by institutional investors. 0.6% of Hubbell shares are owned by insiders. Comparatively, 1.4% of Plug Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Hubbell and Plug Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hubbell	13.78%	27.33%	10.61%
Plug Power	-220.59%	-56.01%	-21.09%

Summary

Hubbell beats Plug Power on 11 of the 15 factors compared between the two stocks.

About Hubbell

Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.

About Plug Power

Plug Power Inc. develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) fuel cell system that provides power to material handling electric vehicles; GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenKey, an integrated turn-key solution for transitioning to fuel cell power. It also provides electrolyzers, a hydrogen generator for clean hydrogen production; liquefaction systems that provides liquid hydrogen to customers; cryogenic equipment for the distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, including trailers and mobile storage equipment; and liquid hydrogen, an alternative fuel to fossil-based energy. The company sells its products through a direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was incorporated in 1997 and is headquartered in Latham, New York.