Analyzing Yingli Green Energy Holding Company Limited (YGE) & FuelCell Energy (NASDAQ:FCEL)

Yingli Green Energy Holding Company Limited (NYSE: YGE) and FuelCell Energy (NASDAQ:FCEL) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitabiliy, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Yingli Green Energy Holding Company Limited and FuelCell Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Yingli Green Energy Holding Company Limited	$1.07 billion	0.04	$48.69 million	($18.34)	-0.13
FuelCell Energy	$83.61 million	1.10	-$36.29 million	($1.51)	-1.02

Yingli Green Energy Holding Company Limited has higher revenue and earnings than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than Yingli Green Energy Holding Company Limited, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Yingli Green Energy Holding Company Limited and FuelCell Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yingli Green Energy Holding Company Limited	-31.08%	N/A	-5.70%
FuelCell Energy	-60.75%	-44.42%	-14.99%

Insider & Institutional Ownership

3.6% of Yingli Green Energy Holding Company Limited shares are owned by institutional investors. Comparatively, 14.5% of FuelCell Energy shares are owned by institutional investors. 1.7% of FuelCell Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Yingli Green Energy Holding Company Limited has a beta of 2.34, suggesting that its stock price is 134% more volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yingli Green Energy Holding Company Limited and FuelCell Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yingli Green Energy Holding Company Limited	2	0	1	0	1.67
FuelCell Energy	0	2	1	0	2.33

Yingli Green Energy Holding Company Limited presently has a consensus price target of $3.30, suggesting a potential upside of 38.08%. FuelCell Energy has a consensus price target of $2.00, suggesting a potential upside of 29.87%. Given Yingli Green Energy Holding Company Limited’s higher probable upside, research analysts clearly believe Yingli Green Energy Holding Company Limited is more favorable than FuelCell Energy.

Summary

Yingli Green Energy Holding Company Limited beats FuelCell Energy on 7 of the 12 factors compared between the two stocks.

Yingli Green Energy Holding Company Limited Company Profile

Yingli Green Energy Holding Company Limited is a solar panel manufacturer. The Company’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and solar panel assembly. The Company’s end products include photovoltaic (PV) modules and PV systems of different sizes and power outputs. The Company sells PV modules under its own brand names, Yingli and Yingli Solar, to PV system integrators and distributors located in various markets around the world, including China, Japan, the United States, the United Kingdom, Chile, Algeria, Germany, France, South Africa, Turkey and Honduras. The Company’s products and services include the manufacture of polysilicon ingots and wafers, PV cells, PV modules and integrated PV systems, and the development and operation of solar projects. The Company produces approximately 800 kilogram multi-crystalline polysilicon ingots. The Company’s PV modules have output ranging from 250 to 340 watts.

FuelCell Energy Company Profile

Fuelcell Energy, Inc. delivers fuel cell power solutions. The Company is engaged in designing, manufacturing, installing, operating and maintaining fuel cell power solutions. The Company also provides turnkey power generation solutions to the customers, including power plant installation, operations and maintenance. The Company’s segment is fuel cell power plant production and research. The Company offers its services to various sectors, including utility companies, municipalities, universities, government entities and a range of industrial and commercial enterprises. The Company, by utilizing its Direct FuelCell (DFC) plants, is commercializing a tri-generation distributed hydrogen configuration that generates electricity, heat and hydrogen for industrial and/or transportation uses, as well as a fuel cell carbon capture solution for coal or gas-fired power plants. The Company is also developing and commercializing solid oxide fuel cell (SOFC) plants for sub-megawatt applications.