Ballard Power Systems (NASDAQ:BLDP) vs. GrafTech International (NYSE:EAF) Head-To-Head Analysis

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

Insider & Institutional Ownership

92.8% of GrafTech International shares are owned by institutional investors. Comparatively, 28.0% of Ballard Power Systems shares are owned by institutional investors. 1.2% of GrafTech International shares are owned by company insiders. Comparatively, 0.2% of Ballard Power Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares GrafTech International and Ballard Power Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$509.08 million	0.63	-$219.84 million	($7.46)	-1.59
Ballard Power Systems	$99.40 million	5.55	-$90.91 million	($0.26)	-6.04

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

Volatility and Risk

GrafTech International has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Ballard Power Systems has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-38.43%	N/A	-18.39%
Ballard Power Systems	-72.78%	-13.23%	-11.44%

Analyst Recommendations

This is a summary of recent ratings for GrafTech International and Ballard Power Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	2	4	0	0	1.67
Ballard Power Systems	3	11	2	0	1.94

GrafTech International presently has a consensus target price of $10.00, suggesting a potential downside of 15.84%. Ballard Power Systems has a consensus target price of $3.13, suggesting a potential upside of 99.56%. Given Ballard Power Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Ballard Power Systems is more favorable than GrafTech International.

Summary

Ballard Power Systems beats GrafTech International on 8 of the 14 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

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.