Plug Power (NASDAQ:PLUG – Get Free Report) and Emerson Electric (NYSE:EMR – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Profitability
This table compares Plug Power and Emerson Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Plug Power | -312.29% | -82.21% | -47.92% |
| Emerson Electric | 14.92% | 14.34% | 7.79% |
Valuation & Earnings
This table compares Plug Power and Emerson Electric”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Plug Power | $628.81 million | 2.91 | -$2.10 billion | ($2.47) | -0.65 |
| Emerson Electric | $17.49 billion | 4.25 | $1.97 billion | $4.65 | 28.39 |
Emerson Electric has higher revenue and earnings than Plug Power. Plug Power is trading at a lower price-to-earnings ratio than Emerson Electric, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Plug Power has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Plug Power and Emerson Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Plug Power | 5 | 7 | 4 | 0 | 1.94 |
| Emerson Electric | 1 | 5 | 11 | 2 | 2.74 |
Plug Power currently has a consensus price target of $1.8731, indicating a potential upside of 17.43%. Emerson Electric has a consensus price target of $142.3889, indicating a potential upside of 7.86%. Given Plug Power’s higher probable upside, research analysts clearly believe Plug Power is more favorable than Emerson Electric.
Insider & Institutional Ownership
43.5% of Plug Power shares are owned by institutional investors. Comparatively, 74.3% of Emerson Electric shares are owned by institutional investors. 1.4% of Plug Power shares are owned by insiders. Comparatively, 0.5% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Emerson Electric beats Plug Power on 12 of the 15 factors compared between the two stocks.
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.
About Emerson Electric
Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
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