Ballard Power Systems (NASDAQ:BLDP – Get Free Report) and Unitil (NYSE:UTL – Get Free Report) are both small-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Profitability
This table compares Ballard Power Systems and Unitil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ballard Power Systems | -78.60% | -13.48% | -11.64% |
| Unitil | 9.60% | 9.89% | 2.89% |
Earnings & Valuation
This table compares Ballard Power Systems and Unitil”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ballard Power Systems | $99.40 million | 11.80 | -$90.91 million | ($0.27) | -14.41 |
| Unitil | $536.00 million | 1.77 | $50.20 million | $3.16 | 16.71 |
Unitil has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Unitil, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
28.0% of Ballard Power Systems shares are owned by institutional investors. Comparatively, 76.8% of Unitil shares are owned by institutional investors. 0.2% of Ballard Power Systems shares are owned by insiders. Comparatively, 2.2% of Unitil shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Ballard Power Systems and Unitil, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ballard Power Systems | 3 | 11 | 1 | 0 | 1.87 |
| Unitil | 0 | 5 | 0 | 0 | 2.00 |
Ballard Power Systems presently has a consensus target price of $3.59, suggesting a potential downside of 7.78%. Unitil has a consensus target price of $56.50, suggesting a potential upside of 7.02%. Given Unitil’s stronger consensus rating and higher probable upside, analysts clearly believe Unitil is more favorable than Ballard Power Systems.
Volatility & Risk
Ballard Power Systems has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500. Comparatively, Unitil has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Summary
Unitil beats Ballard Power Systems on 11 of the 14 factors compared between the two stocks.
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.
About Unitil
Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through two segments, Utility Electric Operations, Utility Gas Operations. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as electricity and natural gas in the greater Fitchburg area of north central Massachusetts. It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides real estate management services. It serves approximately 108,100 electric customers and 87,500 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.
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