Analyzing Ocean Power Technologies (NASDAQ:OPTT) & Plug Power (NASDAQ:PLUG)

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

Volatility & Risk

Ocean Power Technologies has a beta of 3.01, indicating that its stock price is 201% more volatile than the S&P 500. Comparatively, Plug Power has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ocean Power Technologies 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
Ocean Power Technologies	$4.26 million	1.26	-$27.48 million	($6.69)	-0.08
Plug Power	$709.92 million	2.67	-$1.63 billion	($1.26)	-1.08

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

Analyst Ratings

This is a summary of recent ratings and target prices for Ocean Power Technologies and Plug Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocean Power Technologies	0	0	1	1	3.50
Plug Power	3	9	5	1	2.22

Ocean Power Technologies currently has a consensus price target of $45.00, indicating a potential upside of 8,810.89%. Plug Power has a consensus price target of $3.25, indicating a potential upside of 139.57%. Given Ocean Power Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ocean Power Technologies is more favorable than Plug Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ocean Power Technologies	-304.91%	-97.03%	-72.36%
Plug Power	-153.68%	-59.87%	-19.78%

Insider & Institutional Ownership

11.9% of Ocean Power Technologies shares are owned by institutional investors. Comparatively, 43.5% of Plug Power shares are owned by institutional investors. 0.6% of Ocean Power Technologies shares are owned by insiders. Comparatively, 1.4% of Plug Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Plug Power beats Ocean Power Technologies on 10 of the 14 factors compared between the two stocks.

About Ocean Power Technologies

Ocean Power Technologies, Inc. develops autonomous marine power and data solutions for customers operating in offshore environments. The company’s technologies are designed to support applications in defense and security, offshore energy, oceanographic research, environmental monitoring and other maritime industries where reliable power and communications can be difficult to provide. Its product portfolio includes PowerBuoy systems, which use ocean-wave energy and onboard equipment to provide power, communications and data services at sea.

About Plug Power

Plug Power Inc. develops hydrogen fuel cell and hydrogen-generation solutions for businesses seeking alternatives to conventional power and fuel sources. Its offerings include fuel cell systems, electrolyzers that produce hydrogen, hydrogen storage and handling equipment, and related infrastructure and services. The company’s products are used in applications such as material-handling equipment, including warehouse forklifts, as well as stationary power and other industrial and mobility uses. Plug also supplies hydrogen and supports customers with installation, maintenance, and fueling solutions.