Eaton (NYSE:ETN) & Ballard Power Systems (NASDAQ:BLDP) Head to Head Analysis

Ballard Power Systems (NASDAQ:BLDP) and Eaton (NYSE:ETN) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Ballard Power Systems and Eaton”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballard Power Systems	$99.40 million	5.27	-$90.91 million	($0.26)	-5.73
Eaton	$27.45 billion	5.22	$4.09 billion	$9.83	37.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ballard Power Systems	-72.78%	-13.23%	-11.44%
Eaton	12.75%	24.58%	9.98%

Risk and Volatility

Ballard Power Systems has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ballard Power Systems and Eaton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ballard Power Systems	3	10	2	0	1.93
Eaton	0	2	20	1	2.96

Ballard Power Systems currently has a consensus target price of $3.30, suggesting a potential upside of 121.76%. Eaton has a consensus target price of $484.10, suggesting a potential upside of 31.33%. Given Ballard Power Systems’ higher probable upside, equities research analysts plainly believe Ballard Power Systems is more favorable than Eaton.

Institutional & Insider Ownership

28.0% of Ballard Power Systems shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 0.2% of Ballard Power Systems shares are held by insiders. Comparatively, 0.1% of Eaton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Eaton beats Ballard Power Systems on 10 of the 14 factors compared between the two stocks.

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.

About Eaton

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.