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Bloom Energy or Plug Power: Which Offers Better Long-Term Upside Now?
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Key Takeaways
Bloom Energy leads Plug Power in earnings growth, profitability, liquidity and one-year stock performance.
BE's ROE of 45.29% and net margin of 15.8% sharply contrast with PLUG's negative 56.01% and 72.7%.
Plug Power trades at 2.1X forward sales versus Bloom Energy's 10.4X, despite weaker financial metrics.
The companies belonging to the Zacks Alternative Energy - Other industry are gaining investor interest as they increasingly adopt fuel cell technology and other clean energy solutions to provide cleaner, more efficient power generation.
Firms like Bloom Energy (BE - Free Report) and Plug Power (PLUG - Free Report) are at the forefront, deploying solid oxide and hydrogen fuel cells to generate electricity with significantly lower emissions compared with traditional fossil-fuel-based systems.
Fuel cell technology is gaining prominence as countries accelerate efforts to reduce carbon emissions and transition toward cleaner energy sources. Unlike conventional power generation methods, fuel cells generate electricity through an electrochemical process, offering high efficiency and lower emissions, depending on the fuel used. These advantages make fuel cells an attractive solution for industries seeking to reduce their carbon footprint while maintaining a reliable power supply. Growing adoption across industrial facilities, commercial establishments and backup power applications is further supporting the industry's long-term growth prospects.
One of the key advantages of fuel cell technology is its ability to provide reliable onsite electricity without depending entirely on traditional power grids. This makes it particularly beneficial for data centers, hospitals and industrial facilities that require uninterrupted power. Fuel cells also offer operational flexibility, improved energy efficiency and enhanced power reliability, helping businesses address rising electricity requirements while supporting their sustainability objectives.
Bloom Energy specializes in solid oxide fuel cell technology through its Energy Server platform, which provides reliable, efficient and scalable onsite power generation. Its modular systems can deliver continuous electricity, reduce dependence on conventional grids and minimize transmission losses. Rising electricity demand from data centers, growing investments in distributed power generation and increasing emphasis on energy security are expected to support the company's revenue growth and margin expansion.
Plug Power focuses on hydrogen fuel cell technology and integrated hydrogen solutions, serving industries seeking cleaner alternatives to conventional energy sources. Its GenDrive systems support material-handling operations by enabling faster refueling, longer operating hours and reduced equipment downtime. The company's integrated hydrogen ecosystem positions it to capitalize on expanding clean energy adoption and efforts to decarbonize logistics operations. However, profitability concerns, funding requirements and execution challenges remain near-term headwinds.
As demand for reliable, efficient and cleaner power solutions continues to increase, particularly from data centers and industrial facilities, both companies are positioned to benefit from expanding fuel cell adoption. Let us compare their fundamentals to determine which stock offers stronger growth potential at current levels.
BE & PLUG’s Earnings Growth Projections
The Zacks Consensus Estimate for Bloom Energy’s earnings per share in 2026 and 2027 has increased year over year by 311.84% and 68.69%, respectively. Long-term (three to five years) earnings growth per share is pegged at 38%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Plug Power’s earnings per share in 2026 and 2027 has increased year over year by 70.42% and 60.48%, respectively.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
BE’s current ROE is 45.29% in contrast to PLUG’s negative 56.01%.
Image Source: Zacks Investment Research
Liquidity
The current ratio measures a company’s ability to cover short-term liabilities with short-term assets, helping assess its near-term financial stability.
The current ratio of Bloom Energy is 3.74 compared with Plug Power's 2.32. This indicates Bloom Energy has comparatively better near-term financial capabilities compared with Plug Power.
Image Source: Zacks Investment Research
BE and PLUG’s Valuation
Price-to-sales ratios are generally used for the valuation of firms like Bloom Energy and Plug Power, and this ratio indicates how much investors are willing to pay for the company’s sales.
At present, Price/ Sales F12M of Bloom Energy is 10.4X, and for Plug Power, it is 2.1X.
Image Source: Zacks Investment Research
Net Margin
Net profit margin measures how efficiently a company converts revenues into profit after all expenses, offering insight into its overall profitability and financial health.
BE’s net margin is 15.8% in contrast to PLUG’s negative 72.7%.
Image Source: Zacks Investment Research
Price Performance
Bloom Energy is benefiting from the rising demand for clean power from artificial intelligence-based data centers. In the past year, Bloom Energy has gained 56% against Plug Power’s decline of 48.7%.
Price Performance (one year)
Image Source: Zacks Investment Research
Summing Up
Bloom Energy focuses on large-scale stationary power generation solutions, serving customers across data centers, healthcare facilities and utilities. Meanwhile, Plug Power specializes in hydrogen fuel cell solutions for material-handling equipment, including forklifts and transportation applications. Both companies continue to invest in research and development to enhance fuel cell technology and deliver reliable, efficient power solutions to their customers.
Based on the above comparison, Bloom Energy appears to have an edge over Plug Power, supported by more favorable earnings estimate revisions, stronger return on equity, higher net profit margins and better share price performance over the past year. These advantages make Bloom Energy a more attractive investment option in the fuel cell industry at current levels.
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Image: Bigstock
Bloom Energy or Plug Power: Which Offers Better Long-Term Upside Now?
Key Takeaways
The companies belonging to the Zacks Alternative Energy - Other industry are gaining investor interest as they increasingly adopt fuel cell technology and other clean energy solutions to provide cleaner, more efficient power generation.
Firms like Bloom Energy (BE - Free Report) and Plug Power (PLUG - Free Report) are at the forefront, deploying solid oxide and hydrogen fuel cells to generate electricity with significantly lower emissions compared with traditional fossil-fuel-based systems.
Fuel cell technology is gaining prominence as countries accelerate efforts to reduce carbon emissions and transition toward cleaner energy sources. Unlike conventional power generation methods, fuel cells generate electricity through an electrochemical process, offering high efficiency and lower emissions, depending on the fuel used. These advantages make fuel cells an attractive solution for industries seeking to reduce their carbon footprint while maintaining a reliable power supply. Growing adoption across industrial facilities, commercial establishments and backup power applications is further supporting the industry's long-term growth prospects.
One of the key advantages of fuel cell technology is its ability to provide reliable onsite electricity without depending entirely on traditional power grids. This makes it particularly beneficial for data centers, hospitals and industrial facilities that require uninterrupted power. Fuel cells also offer operational flexibility, improved energy efficiency and enhanced power reliability, helping businesses address rising electricity requirements while supporting their sustainability objectives.
Bloom Energy specializes in solid oxide fuel cell technology through its Energy Server platform, which provides reliable, efficient and scalable onsite power generation. Its modular systems can deliver continuous electricity, reduce dependence on conventional grids and minimize transmission losses. Rising electricity demand from data centers, growing investments in distributed power generation and increasing emphasis on energy security are expected to support the company's revenue growth and margin expansion.
Plug Power focuses on hydrogen fuel cell technology and integrated hydrogen solutions, serving industries seeking cleaner alternatives to conventional energy sources. Its GenDrive systems support material-handling operations by enabling faster refueling, longer operating hours and reduced equipment downtime. The company's integrated hydrogen ecosystem positions it to capitalize on expanding clean energy adoption and efforts to decarbonize logistics operations. However, profitability concerns, funding requirements and execution challenges remain near-term headwinds.
As demand for reliable, efficient and cleaner power solutions continues to increase, particularly from data centers and industrial facilities, both companies are positioned to benefit from expanding fuel cell adoption. Let us compare their fundamentals to determine which stock offers stronger growth potential at current levels.
BE & PLUG’s Earnings Growth Projections
The Zacks Consensus Estimate for Bloom Energy’s earnings per share in 2026 and 2027 has increased year over year by 311.84% and 68.69%, respectively. Long-term (three to five years) earnings growth per share is pegged at 38%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Plug Power’s earnings per share in 2026 and 2027 has increased year over year by 70.42% and 60.48%, respectively.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
BE’s current ROE is 45.29% in contrast to PLUG’s negative 56.01%.
Image Source: Zacks Investment Research
Liquidity
The current ratio measures a company’s ability to cover short-term liabilities with short-term assets, helping assess its near-term financial stability.
The current ratio of Bloom Energy is 3.74 compared with Plug Power's 2.32. This indicates Bloom Energy has comparatively better near-term financial capabilities compared with Plug Power.
Image Source: Zacks Investment Research
BE and PLUG’s Valuation
Price-to-sales ratios are generally used for the valuation of firms like Bloom Energy and Plug Power, and this ratio indicates how much investors are willing to pay for the company’s sales.
At present, Price/ Sales F12M of Bloom Energy is 10.4X, and for Plug Power, it is 2.1X.
Image Source: Zacks Investment Research
Net Margin
Net profit margin measures how efficiently a company converts revenues into profit after all expenses, offering insight into its overall profitability and financial health.
BE’s net margin is 15.8% in contrast to PLUG’s negative 72.7%.
Image Source: Zacks Investment Research
Price Performance
Bloom Energy is benefiting from the rising demand for clean power from artificial intelligence-based data centers. In the past year, Bloom Energy has gained 56% against Plug Power’s decline of 48.7%.
Price Performance (one year)
Image Source: Zacks Investment Research
Summing Up
Bloom Energy focuses on large-scale stationary power generation solutions, serving customers across data centers, healthcare facilities and utilities. Meanwhile, Plug Power specializes in hydrogen fuel cell solutions for material-handling equipment, including forklifts and transportation applications. Both companies continue to invest in research and development to enhance fuel cell technology and deliver reliable, efficient power solutions to their customers.
Based on the above comparison, Bloom Energy appears to have an edge over Plug Power, supported by more favorable earnings estimate revisions, stronger return on equity, higher net profit margins and better share price performance over the past year. These advantages make Bloom Energy a more attractive investment option in the fuel cell industry at current levels.
Both stocks currently have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.