Shares of hydrogen and fuel cell manufacturers performed well last year, buoyed by growing interest in clean energy, the recent extension of tax credits for fuel cell projects and the election of Democrat Joe Biden to the US presidency – who has proposed spending as much as $ 2 trillion to fight climate change. Bloom Energy and Fuel cell energy (NASDAQ: FCEL), two well-known names in the fuel cell market, saw their stock prices soar 3.5x and 5x respectively in 2020. Let’s take a closer look at the two companies to see who could. to be the best choice for investors. See our analysis Bloom Energy vs FuelCell Energy: BE share seems very undervalued compared to FCEL share for more details on how the financial and valuation metrics of the two companies compare.

Flowering energy sells solid oxide fuel cell generators called Bloom Energy Servers

TO BE
which generate electricity from natural gas or biogas via an electrochemical process without combustion. These servers essentially replace diesel generators in commercial and industrial use and help reduce carbon dioxide pollution by more than two-thirds. While Fuel cell energy (NASDAQ: FCEL) also designs and manufactures fuel cells, the company has focused on the largest fuel cell power plants. Corporate systems are larger and less flexible than Bloom’s.

Bloom’s revenue has grown from around $ 366 million in 2017 to around $ 758 million in the past 12 months, thanks to growth in its server installations. For example, with the power outages and wildfires in California in recent years, companies have started working with Bloom’s products. Fuel cell

FCEL
, on the other hand, saw its revenue drop from around $ 96 million to $ 65 million over the same period as its product revenue plummeted, although it continues to generate revenue. certain existing electricity production contracts as well as service and license revenues. Bloom also cut losses, with operating margins improving from around -46% to around -17.5% between 2017 and the past 12 months. FuelCell, on the other hand, saw its margins decline from -47% to around -85% over the same period.

Now let’s look at the relative valuation of the two companies. FuelCell Energy is trading at a much higher price for a sell multiple of 40x, compared to around 5x for Bloom. This does not make sense, given that the two companies operating in the same industry with Bloom apparently are working with superior technology. Additionally, Bloom has more than doubled its revenue since 2017, while FuelCell has seen its sales drop by about a third over the same period. Given this, we believe Bloom Energy is currently the better choice of the two stocks.

[12/11/2020] Actions to play the hydrogen economy

Interest in clean energy stocks has skyrocketed this year, driven by low interest rates, the improving economy and the election of Democrat Joe Biden – who has offered to spend up to $ 2 trillion to fight climate change – to the US presidency. While solar and electric vehicle stocks have been the most prominent winners, another theme that seems to have caught the interest of investors is the concept of the ‘hydrogen economy’ or the use of hydrogen. hydrogen as fuel for transportation and other energy needs, replacing fossil fuels.

Hydrogen burns much cleaner than petroleum-based fuels and can be produced using only water and energy or from hydrogen-rich gases such as methane. Hydrogen is also seen as a way to store excess renewable electricity, as electricity can be used to perform an electrolysis process, which converts water into hydrogen. Our theme of Hydrogen saving stocks includes shares of US-based companies that sell fuel cells, renewable energy equipment, and supply hydrogen gas. Below is a bit more about the companies in our theme and how they fit into the larger picture of the hydrogen economy.

Flowering energy sells solid oxide fuel cell generators called Bloom Energy Servers that use natural gas or biogas as fuel through a non-combustion electrochemical process. The company is also developing hydrogen fuel cells, which use only gaseous hydrogen as fuel. The title is up 245% since the start of the year.

Fuel cell energy (NASDAQ: FCEL) is a company that designs and manufactures carbonate and solid oxide fuel cells that operate on hydrogen-rich fuels such as natural gas and biogas. The company also operates more than 50 fuel cell power plants around the world. The title is up 229% since the start of the year.

Air products and chemicals

APD
(NYSE: APD), a company that sells gases and chemicals for industrial use, is one of the world’s largest producers of hydrogen. Earlier this year, the company presented plans to build a major hydrogen plant powered by 4 gigawatts of renewable electricity in Saudi Arabia. The title is up 14% since the start of the year.

First solar

FSLR
is the largest manufacturer of solar panels based in the United States. Solar players could also benefit from the hydrogen economy, as hydrogen can be produced from water through an electrolysis process using solar electricity. Solar energy typically experiences intermittent production and mismatches between supply and demand, so excess energy could be “stored” in hydrogen. The title is up 55% since the start of the year.

Cummins (NYSE: CMI) – an industrial company best known for its engines and power generation products – has been working on hydrogen-based technologies for nearly two decades. The company acquired Hydrogenics, a major Canadian player in hydrogen fuel cells, last year. The stock is up 23% year-to-date.

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