Better Buy: Plug Power vs. Ballard Power Systems
In the last year, Plug Power (NASDAQ: PLUG) stock has risen 1,330%. In the same timeframe, peer Ballard Power's (NASDAQ: BLDP) stock rose "just" 217%. Enthusiasm for renewable energy in general, and hydrogen in particular, has sent the shares of the two companies soaring. But is there more room for these stocks to run? And is one of the two fuel cell companies a better buy than the other? Let's find out.
Both Plug Power and Ballard Power offer proton exchange membrane (PEM) fuel cells -- the most common fuel cell technology in use right now. These generate electricity taking a fuel, such as hydrogen, as input. Fuel cells have applications in the materials handling market (in forklifts), heavy duty vehicles, such as buses and trucks, and passenger cars. These are also used in stationary power generation. Though a majority of hydrogen is currently derived from natural gas, hydrogen fuel cells are promoted for their potential as a clean fuel, where hydrogen is derived from water through electrolysis.
While both Plug Power and Ballard Power have been growing their revenue steadily, Plug Power's growth has been faster. Until now, Plug Power's key market has been forklifts. The company has acquired prominent customers, including Amazon and Home Depot, which helped boost its sales in the last few years.
Source Fool.com
