Head to Head Comparison: Ballard Power Systems (NASDAQ:BLDP) and Consolidated Edison (NYSE:ED)

Consolidated Edison (NYSE:ED) and Ballard Power Systems (NASDAQ:BLDP) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Insider and Institutional Ownership

66.3% of Consolidated Edison shares are held by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by insiders. Comparatively, 0.2% of Ballard Power Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Consolidated Edison 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
Consolidated Edison	$15.26 billion	2.65	$1.82 billion	$5.72	19.56
Ballard Power Systems	$69.73 million	9.14	-$324.24 million	($0.40)	-5.30

Consolidated Edison has higher revenue and earnings than Ballard Power Systems. Ballard Power Systems is trading at a lower price-to-earnings ratio than Consolidated Edison, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Consolidated Edison has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Profitability

This table compares Consolidated Edison and Ballard Power Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consolidated Edison	12.27%	8.79%	2.89%
Ballard Power Systems	-132.80%	-17.89%	-15.43%

Analyst Recommendations

This is a breakdown of recent ratings for Consolidated Edison and Ballard Power Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consolidated Edison	5	7	3	0	1.87
Ballard Power Systems	4	11	0	0	1.73

Consolidated Edison currently has a consensus price target of $104.20, indicating a potential downside of 6.85%. Ballard Power Systems has a consensus price target of $2.33, indicating a potential upside of 9.91%. Given Ballard Power Systems’ higher possible upside, analysts plainly believe Ballard Power Systems is more favorable than Consolidated Edison.

Summary

Consolidated Edison beats Ballard Power Systems on 11 of the 14 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

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.