Contrasting Public Service Enterprise Group (NYSE:PEG) & Ballard Power Systems (NASDAQ:BLDP)

Public Service Enterprise Group (NYSE:PEG) 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 institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Profitability

This table compares Public Service Enterprise Group and Ballard Power Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Public Service Enterprise Group	17.78%	12.08%	3.58%
Ballard Power Systems	-409.35%	-21.52%	-18.62%

Volatility and Risk

Public Service Enterprise Group has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Insider and Institutional Ownership

73.3% of Public Service Enterprise Group shares are owned by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are owned by institutional investors. 0.2% of Public Service Enterprise Group shares are owned by insiders. Comparatively, 0.2% of Ballard Power Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Public Service Enterprise Group and Ballard Power Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Service Enterprise Group	$10.29 billion	4.11	$1.77 billion	$3.96	21.38
Ballard Power Systems	$69.73 million	16.21	-$324.24 million	($0.99)	-3.80

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Public Service Enterprise Group and Ballard Power Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Service Enterprise Group	0	5	6	0	2.55
Ballard Power Systems	5	10	0	0	1.67

Public Service Enterprise Group presently has a consensus target price of $90.95, indicating a potential upside of 7.43%. Ballard Power Systems has a consensus target price of $1.81, indicating a potential downside of 51.76%. Given Public Service Enterprise Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Public Service Enterprise Group is more favorable than Ballard Power Systems.

Summary

Public Service Enterprise Group beats Ballard Power Systems on 12 of the 14 factors compared between the two stocks.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.

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.