Critical Analysis: Bloom Energy (BE) & Ideal Power (IPWR)

Ideal Power (NYSE: BE) and Bloom Energy (NYSE:BE) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Ideal Power -527.25% -72.98% -61.62%
Bloom Energy N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ideal Power and Bloom Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ideal Power 0 2 1 0 2.33
Bloom Energy 2 3 3 0 2.13

Ideal Power currently has a consensus target price of $1.67, indicating a potential upside of 160.42%. Bloom Energy has a consensus target price of $25.71, indicating a potential downside of 10.40%. Given Ideal Power’s stronger consensus rating and higher probable upside, research analysts plainly believe Ideal Power is more favorable than Bloom Energy.

Institutional & Insider Ownership

10.4% of Ideal Power shares are held by institutional investors. 7.6% of Ideal Power shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ideal Power and Bloom Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ideal Power $1.21 million 7.40 -$10.43 million ($0.78) -0.82
Bloom Energy N/A N/A N/A N/A N/A

Bloom Energy has lower revenue, but higher earnings than Ideal Power.

Summary

Ideal Power beats Bloom Energy on 5 of the 9 factors compared between the two stocks.

About Ideal Power

Ideal Power Inc. develops power conversion solutions with a focus on solar and storage, microgrid, and stand-alone energy storage applications. It operates through two Divisions, Power Conversion Systems and B-TRAN. The Power Conversion Systems Division focuses on its Power Packet Switching Architecture technology. The B-TRAN Division develops its Bi-directional bi-polar junction TRANsistor solid state switch technology. The company's principal products include 30-kilowatt(kW) power conversion systems, such as two-port and multi-port products. It also offers 30kW SunDial, a PV string inverter, which is field upgradable through the addition of a drop-in second DC port to connect batteries to a solar PV array; and The SunDial Plus, such as the PV inverter and the second DC battery port. The company sells its products primarily to systems integrators in the United States. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was founded in 2007 and is headquartered in Austin, Texas.

About Bloom Energy

Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuel cell systems. It offers Bloom Energy Server, a stationary power generation platform that converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in September 2006. Bloom Energy Corporation was founded in 2001 and is headquartered in Sunnyvale, California.

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