Contrasting Ballard Power Systems (NASDAQ:BLDP) and Pampa Energia (NYSE:PAM)

Pampa Energia (NYSE:PAM) and Ballard Power Systems (NASDAQ:BLDP) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

12.8% of Pampa Energia shares are held by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are held by institutional investors. 55.5% of Pampa Energia shares are held by insiders. Comparatively, 0.2% of Ballard Power Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Pampa Energia and Ballard Power Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pampa Energia	$2.00 billion	2.20	$377.00 million	$6.93	11.64
Ballard Power Systems	$99.40 million	9.86	-$90.91 million	($0.30)	-10.83

Pampa Energia has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Pampa Energia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pampa Energia and Ballard Power Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pampa Energia	18.87%	10.75%	6.00%
Ballard Power Systems	-91.50%	-14.62%	-12.60%

Volatility and Risk

Pampa Energia has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Pampa Energia and Ballard Power Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pampa Energia	0	2	2	0	2.50
Ballard Power Systems	3	10	0	0	1.77

Pampa Energia presently has a consensus price target of $105.00, indicating a potential upside of 30.15%. Ballard Power Systems has a consensus price target of $2.69, indicating a potential downside of 17.36%. Given Pampa Energia’s stronger consensus rating and higher possible upside, analysts plainly believe Pampa Energia is more favorable than Ballard Power Systems.

Summary

Pampa Energia beats Ballard Power Systems on 11 of the 14 factors compared between the two stocks.

About Pampa Energia

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

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.