Analyzing Ballard Power Systems (NASDAQ:BLDP) and Energias de Portugal (OTCMKTS:EDPFY)

Ballard Power Systems (NASDAQ:BLDP) and Energias de Portugal (OTCMKTS:EDPFY) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Ballard Power Systems has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Energias de Portugal has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Profitability

This table compares Ballard Power Systems and Energias de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ballard Power Systems	-91.50%	-14.62%	-12.60%
Energias de Portugal	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Ballard Power Systems and Energias de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ballard Power Systems	3	10	0	0	1.77
Energias de Portugal	0	1	1	0	2.50

Ballard Power Systems presently has a consensus price target of $2.69, indicating a potential downside of 23.27%. Given Ballard Power Systems’ higher possible upside, equities analysts plainly believe Ballard Power Systems is more favorable than Energias de Portugal.

Valuation and Earnings

This table compares Ballard Power Systems and Energias de Portugal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballard Power Systems	$99.40 million	10.62	-$90.91 million	($0.30)	-11.67
Energias de Portugal	N/A	N/A	N/A	$0.78	67.14

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

Summary

Energias de Portugal beats Ballard Power Systems on 7 of the 12 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 Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.