Financial Analysis: Bloom Energy (NYSE:BE) versus Eaton (NYSE:ETN)

Bloom Energy (NYSE:BEGet Free Report) and Eaton (NYSE:ETNGet Free Report) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Risk and Volatility

Bloom Energy has a beta of 3.79, suggesting that its stock price is 279% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Bloom Energy and Eaton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bloom Energy 1 12 10 3 2.58
Eaton 0 4 13 3 2.95

Bloom Energy presently has a consensus target price of $248.05, indicating a potential upside of 18.47%. Eaton has a consensus target price of $442.00, indicating a potential upside of 9.80%. Given Bloom Energy’s higher probable upside, equities research analysts plainly believe Bloom Energy is more favorable than Eaton.

Valuation and Earnings

This table compares Bloom Energy and Eaton”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bloom Energy $2.02 billion 30.47 -$88.43 million $0.75 279.16
Eaton $27.45 billion 5.70 $4.09 billion $9.83 40.95

Eaton has higher revenue and earnings than Bloom Energy. Eaton is trading at a lower price-to-earnings ratio than Bloom Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.0% of Bloom Energy shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 3.0% of Bloom Energy shares are held by insiders. Comparatively, 0.1% of Eaton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bloom Energy and Eaton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bloom Energy 7.87% 35.45% 8.30%
Eaton 12.75% 24.58% 9.98%

Summary

Eaton beats Bloom Energy on 8 of the 14 factors compared between the two stocks.

About Bloom Energy

(Get Free Report)

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. The company offers Bloom Energy Server, a solid oxide technology that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels into electricity through an electrochemical process without combustion. It sells its products through direct and indirect sales channels to utilities, data centers, agriculture, retail, hospitals, higher education, biotech, and manufacturing industries. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.

About Eaton

(Get Free Report)

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

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