FuelCell Energy (NASDAQ:FCEL – Get Free Report) and TC Energy (NYSE:TRP – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares FuelCell Energy and TC Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FuelCell Energy | -107.51% | -17.76% | -12.54% |
| TC Energy | 22.22% | 10.74% | 3.14% |
Earnings & Valuation
This table compares FuelCell Energy and TC Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FuelCell Energy | $158.16 million | 5.81 | -$187.90 million | ($6.91) | -2.51 |
| TC Energy | $10.91 billion | 6.30 | $2.52 billion | $2.30 | 29.88 |
TC Energy has higher revenue and earnings than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than TC Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for FuelCell Energy and TC Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FuelCell Energy | 2 | 7 | 0 | 0 | 1.78 |
| TC Energy | 0 | 5 | 8 | 1 | 2.71 |
FuelCell Energy presently has a consensus target price of $8.24, indicating a potential downside of 52.44%. TC Energy has a consensus target price of $78.50, indicating a potential upside of 14.22%. Given TC Energy’s stronger consensus rating and higher possible upside, analysts clearly believe TC Energy is more favorable than FuelCell Energy.
Risk & Volatility
FuelCell Energy has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Institutional & Insider Ownership
42.8% of FuelCell Energy shares are held by institutional investors. Comparatively, 83.1% of TC Energy shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
TC Energy beats FuelCell Energy on 13 of the 15 factors compared between the two stocks.
About FuelCell Energy
FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
About TC Energy
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.
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