Avista (NYSE:AVA – Get Free Report) and Ballard Power Systems (NASDAQ:BLDP – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Profitability
This table compares Avista and Ballard Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avista | 10.75% | 7.65% | 2.50% |
| Ballard Power Systems | -78.60% | -13.48% | -11.64% |
Analyst Ratings
This is a summary of current ratings and target prices for Avista and Ballard Power Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avista | 1 | 5 | 1 | 0 | 2.00 |
| Ballard Power Systems | 3 | 11 | 1 | 0 | 1.87 |
Insider & Institutional Ownership
85.2% of Avista shares are held by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are held by institutional investors. 0.8% of Avista shares are held by insiders. Comparatively, 0.2% of Ballard Power Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Avista 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 | |
| Avista | $1.96 billion | 1.74 | $193.00 million | $2.51 | 16.52 |
| Ballard Power Systems | $99.40 million | 16.80 | -$90.91 million | ($0.27) | -20.52 |
Avista has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Avista, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Avista has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Summary
Avista beats Ballard Power Systems on 11 of the 13 factors compared between the two stocks.
About Avista
Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.
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.
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