PPL (NYSE:PPL – Get Free Report) and Ballard Power Systems (NASDAQ:BLDP – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
77.0% of PPL shares are owned by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are owned by institutional investors. 0.3% of PPL shares are owned by company insiders. Comparatively, 0.2% of Ballard Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares PPL and Ballard Power Systems”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPL | $8.46 billion | 3.27 | $888.00 million | $1.34 | 27.90 |
| Ballard Power Systems | $69.73 million | 14.14 | -$324.24 million | ($0.99) | -3.31 |
PPL has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than PPL, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for PPL and Ballard Power Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPL | 0 | 2 | 8 | 2 | 3.00 |
| Ballard Power Systems | 5 | 10 | 0 | 1 | 1.81 |
PPL currently has a consensus price target of $40.18, suggesting a potential upside of 7.48%. Ballard Power Systems has a consensus price target of $2.00, suggesting a potential downside of 38.89%. Given PPL’s stronger consensus rating and higher possible upside, research analysts clearly believe PPL is more favorable than Ballard Power Systems.
Profitability
This table compares PPL and Ballard Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PPL | 11.22% | 8.81% | 3.02% |
| Ballard Power Systems | -409.35% | -21.52% | -18.62% |
Risk & Volatility
PPL has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Summary
PPL beats Ballard Power Systems on 13 of the 15 factors compared between the two stocks.
About PPL
PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.
About Ballard Power Systems
Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane (PEM) fuel cell products. The company offers its products for power product comprising for bus, truck, rail, marine, stationary, and emerging market, such as material handling, off-road, and other applications. It also engages in the delivery of services, including technology solutions, after sales services, and training; and provision of engineering services, product and systems integration services, and related technology transfer for a variety of PEM fuel cell applications. It operates in the United States, Germany, Canada, China, Poland, the United Kingdom, the Netherlands, France, Denmark, Belgium, India, Taiwan, Spain, Norway, Australia, Japan, and internationally. The company has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada.
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