Plug Power (NASDAQ: PLUG) and Ideal Power (NASDAQ:IPWR) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
26.6% of Plug Power shares are held by institutional investors. Comparatively, 12.5% of Ideal Power shares are held by institutional investors. 5.1% of Plug Power shares are held by company insiders. Comparatively, 10.0% of Ideal Power shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Plug Power and Ideal Power, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Plug Power currently has a consensus price target of $3.60, suggesting a potential upside of 92.51%. Ideal Power has a consensus price target of $3.38, suggesting a potential upside of 170.00%. Given Ideal Power’s higher probable upside, analysts clearly believe Ideal Power is more favorable than Plug Power.
This table compares Plug Power and Ideal Power’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Plug Power and Ideal Power’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Plug Power||$103.26 million||4.14||-$127.08 million||($0.60)||-3.12|
|Ideal Power||$1.21 million||14.46||-$10.43 million||($0.78)||-1.60|
Ideal Power has lower revenue, but higher earnings than Plug Power. Plug Power is trading at a lower price-to-earnings ratio than Ideal Power, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Plug Power has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Plug Power beats Ideal Power on 8 of the 14 factors compared between the two stocks.
Plug Power Company Profile
Plug Power Inc., an alternative energy technology provider, engages in the design, development, commercialization, and manufacture of hydrogen and fuel cell systems for the material handling and stationary power markets primarily in North America and Europe. It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and related hydrogen storage and dispensing infrastructure. The company offers GenDrive, a hydrogen fueled PEM fuel cell system that provides power to material handling electric vehicles; GenFuel, a hydrogen fueling delivery, generation, storage, and dispensing systems; GenCare, which is an ongoing maintenance program for GenDrive fuel cells, GenSure products, GenFuel products, and ProGen engines; and GenSure, a stationary fuel cell solution that provides scalable modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors. It also provides GenKey, a turn-key solution for transitioning to fuel cell power; ProGen, a fuel cell stack and engine technology that is used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; and GenFund, which offers financing solutions to customers. The company offers its products to distribution and manufacturing businesses, and government agencies through direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was founded in 1997 and is headquartered in Latham, New York.
Ideal Power Company Profile
Ideal Power Inc. (Ideal Power) designs, markets and sells electrical power conversion products using its Power Packet Switching Architecture (PPSA) technology. The Company’s PPSA is a power conversion technology that utilizes standardized hardware with application specific embedded software. It sells products to systems integrators for integration into their system, which enable end users to manage their electricity consumption by reducing demand charges or fossil fuel consumption, integrating renewable energy sources and form their own microgrid. It focuses on licensing PPSA-based product designs to original equipment manufacturers (OEMs) within its target markets. Its products use multiple insulated gate bipolar transistors (IGBTs), which switch power in a direction, including direct current (DC) to alternating current (AC), or AC to DC. The PPSA uses indirect power flow in which power flows through input switches, and is temporarily stored in its AC link inductor.
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