Reviewing Fluence Energy (NASDAQ:FLNC) and FuelCell Energy (NASDAQ:FCEL)

FuelCell Energy (NASDAQ:FCEL) and Fluence Energy (NASDAQ:FLNC) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FuelCell Energy	-132.41%	-15.90%	-11.33%
Fluence Energy	-1.62%	-8.29%	-1.85%

Volatility and Risk

FuelCell Energy has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, Fluence Energy has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500.

Earnings and Valuation

This table compares FuelCell Energy and Fluence Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FuelCell Energy	$158.16 million	10.75	-$187.90 million	($6.57)	-3.24
Fluence Energy	$2.26 billion	1.09	-$48.31 million	($0.36)	-37.33

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

Analyst Recommendations

This is a summary of current recommendations for FuelCell Energy and Fluence Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FuelCell Energy	2	3	4	0	2.22
Fluence Energy	4	11	7	1	2.22

FuelCell Energy presently has a consensus price target of $22.83, indicating a potential upside of 7.40%. Fluence Energy has a consensus price target of $19.53, indicating a potential upside of 45.29%. Given Fluence Energy’s higher possible upside, analysts clearly believe Fluence Energy is more favorable than FuelCell Energy.

Institutional & Insider Ownership

42.8% of FuelCell Energy shares are owned by institutional investors. Comparatively, 53.2% of Fluence Energy shares are owned by institutional investors. 5.5% of FuelCell Energy shares are owned by company insiders. Comparatively, 0.7% of Fluence Energy shares are owned 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.

Summary

Fluence Energy beats FuelCell Energy on 11 of the 15 factors compared between the two stocks.

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.

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.