Dragonfly Energy (NASDAQ:DFLI) versus FuelCell Energy (NASDAQ:FCEL) Critical Contrast

FuelCell Energy (NASDAQ:FCEL) and Dragonfly Energy (NASDAQ:DFLI) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Institutional & Insider Ownership

42.8% of FuelCell Energy shares are held by institutional investors. Comparatively, 8.2% of Dragonfly Energy shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by company insiders. Comparatively, 3.1% of Dragonfly Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FuelCell Energy and Dragonfly Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FuelCell Energy	-113.60%	-16.85%	-12.31%
Dragonfly Energy	-129.35%	N/A	-46.06%

Earnings & Valuation

This table compares FuelCell Energy and Dragonfly Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FuelCell Energy	$158.16 million	5.60	-$187.90 million	($3.43)	-3.23
Dragonfly Energy	$51.89 million	0.07	-$69.94 million	($143.92)	-0.01

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for FuelCell Energy and Dragonfly Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FuelCell Energy	2	5	6	0	2.31
Dragonfly Energy	1	1	1	0	2.00

FuelCell Energy currently has a consensus target price of $21.80, suggesting a potential upside of 96.66%. Dragonfly Energy has a consensus target price of $25.00, suggesting a potential upside of 1,134.57%. Given Dragonfly Energy’s higher probable upside, analysts plainly believe Dragonfly Energy is more favorable than FuelCell Energy.

Volatility and Risk

FuelCell Energy has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500. Comparatively, Dragonfly Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Summary

FuelCell Energy beats Dragonfly Energy on 10 of the 14 factors compared between the two stocks.

About FuelCell Energy

FuelCell Energy, Inc. develops, manufactures, installs and services stationary fuel cell power plants. Its systems generate electricity on site and can also provide heat for combined heat and power applications, supporting uses such as commercial and industrial facilities, utilities and microgrids. The company’s fuel cell platforms are designed to operate on natural gas, renewable biogas and other fuels. FuelCell Energy also pursues applications involving hydrogen production and carbon capture, using its fuel cell technology in systems intended to support lower-emission energy and industrial processes.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. develops and manufactures lithium-ion battery systems and energy-storage technologies. Through its Battle Born Batteries brand, the company offers batteries and related power solutions designed for recreational vehicles, marine applications, off-grid systems, and other mobile and stationary energy-storage uses. The company is also developing solid-state battery technology based on a dry powder coating manufacturing process. Dragonfly Energy’s technology is intended to support the production of safer, more efficient, and scalable energy-storage systems while reducing reliance on conventional liquid electrolyte designs.