Reviewing W2 Energy (OTCMKTS:AEPT) & FuelCell Energy (NASDAQ:FCEL)

W2 Energy (OTCMKTS:AEPT) and FuelCell Energy (NASDAQ:FCEL) are both small-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares W2 Energy and FuelCell Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W2 Energy	$23.81 million	0.01	-$15.06 million	($0.03)	-0.01
FuelCell Energy	$112.13 million	0.83	-$126.01 million	($7.52)	-0.54

W2 Energy has higher earnings, but lower revenue than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than W2 Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

2.3% of W2 Energy shares are held by institutional investors. Comparatively, 42.8% of FuelCell Energy shares are held by institutional investors. 0.4% of FuelCell Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

W2 Energy has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 4.15, indicating that its stock price is 315% more volatile than the S&P 500.

Profitability

This table compares W2 Energy and FuelCell Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W2 Energy	N/A	N/A	N/A
FuelCell Energy	-108.52%	-21.16%	-15.03%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for W2 Energy and FuelCell Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W2 Energy	0	0	0	0	0.00
FuelCell Energy	1	5	0	0	1.83

FuelCell Energy has a consensus price target of $9.8583, suggesting a potential upside of 142.22%. Given FuelCell Energy’s stronger consensus rating and higher possible upside, analysts plainly believe FuelCell Energy is more favorable than W2 Energy.

Summary

FuelCell Energy beats W2 Energy on 7 of the 13 factors compared between the two stocks.

About W2 Energy

American Environmental Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. It engages in the designing, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. The company also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services; educational marketing platforms of podcasts and videography; and construction, drilling, flowback, completions, and well-site services. The company was formerly known as American Energy Partners, Inc. and changed its name to American Environmental Partners, Inc. in October 2023. The company was incorporated in 1997 and is based in Canonsburg, Pennsylvania.

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.