Head to Head Comparison: FuelCell Energy (NASDAQ:FCEL) & Central Puerto (NYSE:CEPU)

Central Puerto (NYSE:CEPU) and FuelCell Energy (NASDAQ:FCEL) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Central Puerto and FuelCell Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	1	0	2.50
FuelCell Energy	2	7	0	0	1.78

Central Puerto currently has a consensus price target of $17.50, indicating a potential upside of 25.73%. FuelCell Energy has a consensus price target of $8.24, indicating a potential downside of 52.62%. Given Central Puerto’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Central Puerto is more favorable than FuelCell Energy.

Profitability

This table compares Central Puerto and FuelCell Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Puerto	37.86%	15.69%	10.94%
FuelCell Energy	-107.51%	-17.76%	-12.54%

Valuation and Earnings

This table compares Central Puerto and FuelCell Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Puerto	$782.60 million	2.69	$277.08 million	$2.08	6.69
FuelCell Energy	$158.16 million	5.83	-$187.90 million	($6.91)	-2.52

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

Institutional & Insider Ownership

3.0% of Central Puerto shares are owned by institutional investors. Comparatively, 42.8% of FuelCell Energy shares are owned by institutional investors. 0.1% of Central Puerto shares are owned by insiders. Comparatively, 5.5% of FuelCell Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Central Puerto has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.

Summary

Central Puerto beats FuelCell Energy on 10 of the 14 factors compared between the two stocks.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.