Critical Analysis: Fluence Energy (NASDAQ:FLNC) & Itm Power (OTCMKTS:ITMPF)

Fluence Energy (NASDAQ:FLNC) and Itm Power (OTCMKTS:ITMPF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility and Risk

Fluence Energy has a beta of 2.99, meaning that its stock price is 199% more volatile than the S&P 500. Comparatively, Itm Power has a beta of 2.25, meaning that its stock price is 125% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fluence Energy and Itm Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fluence Energy	$2.26 billion	1.23	-$48.31 million	($0.44)	-34.39
Itm Power	$33.35 million	15.75	-$58.30 million	N/A	N/A

Fluence Energy has higher revenue and earnings than Itm Power.

Profitability

This table compares Fluence Energy and Itm Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fluence Energy	-2.04%	-10.10%	-2.31%
Itm Power	N/A	N/A	N/A

Institutional and Insider Ownership

53.2% of Fluence Energy shares are held by institutional investors. 0.7% of Fluence Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Fluence Energy and Itm Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fluence Energy	3	14	4	0	2.05
Itm Power	0	1	0	1	3.00

Fluence Energy currently has a consensus target price of $16.25, suggesting a potential upside of 7.40%. Given Fluence Energy’s higher possible upside, equities research analysts clearly believe Fluence Energy is more favorable than Itm Power.

Summary

Fluence Energy beats Itm Power on 7 of the 13 factors compared between the two stocks.

About Fluence Energy

Fluence Energy, Inc., through its subsidiaries, offers energy storage products and solution, services, and artificial intelligence enabled software-as-a-service products for renewables and storage applications in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company sells energy storage products with integrated hardware, software, and digital intelligence. Its energy storage products include Gridstack Pro, a large-scale front-of-the-meter application; Gridstack, a front-of-the-meter application; Sunstack, a DC-coupled energy storage product for DC-coupled solar + storage projects; Edgestack, for smaller-scale commercial and industrial use cases; and Ultrastack, for critical system requirements of distribution and transmission networks. The company also provides engineering and delivery services to support the deployment of its storage products; operational and maintenance services; and digital applications. It serves independent power producers, developer, utilities, and other generators. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.

About Itm Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.