After some insinuation that Plug Power stock (NYSE: PLUG) will hit $50 a share by December 2022, the debate of FCEL vs PLUG is one that continues to go on between experienced investors. While energy stocks are proving to be a good investment overall, there’s some question as to which of these stocks are the better investment in the long run.
Let’s take a look at what we know about the futures of these stocks.
FCEL vs PLUG: Which Is The Better Buy?
In terms of FCEL vs PLUG and what they offer their clientele, they’re well within the same ballpark. In other words, put simply, they both tap into the growing market of “hydrogen energy.”
Given that “alternative energy” — that is, energy that isn’t based in coal and/or oil — is quickly becoming a hot commodity, it’s unsurprising that both are growing quickly.
But FuelCell Energy’s (NYSE: FCEL) revenue has dropped, steadily, over the course of several years.
In fact, according to The Motley Fool, FCEL’s revenue is on a freefall and doesn’t look to be picking up any time soon.
“FuelCell Energy’s revenue over this time frame was largely on a downward trend. The company’s revenue fell 18% in the latest quarter. Though this looks bad, the fall in FuelCell’s revenue is largely attributed to a change in the company’s strategy,” they write.
“FuelCell now focuses on power purchase agreements, or PPAs, instead of outright selling of fuel cell power plants.
This allows the company to benefit from future cash flows, which are cumulatively higher than those from the outright sale but generate less revenue upfront.”
So, when it comes to FCEL vs PLUG, it’s clearly Plug Power that’s the better buy.
What Makes PLUG More Attractive?
Unlike FCEL, PLUG makes its money from the sale of fuel cell systems and infrastructure.
That, according to Stock News, makes it a far better buy — so much so, in fact, that PLUG’s YTD is over 400%.
“Another recent catalyst has been the strong polling for Joe Biden and Senate Democrats who are proposing an ambitious plan to invest $2 trillion in green energy via subsidies and tax credits,” they write.
“PLUG’s stock has been benefiting from this tailwind as it has a YTD gain of 483%. In contrast, FCEL has been essentially flat with a 4% gain.”
This, combined with Bank of America’s belief that the hydrogen economy will be a multi-trillion-dollar opportunity by 2050, makes us bullish about PLUG. So, in terms of FCEL vs PLUG, the latter is the superior choice.