A daily stock analysis based on stock market today
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up

Stock Battles - Plug Power (PLUG) vs Canadian Solar (CSIQ)

7/21/2020

 
Which renewable energy company is a more lucrative investment? With Plug Power (PLUG) and Canadian Solar (CSIQ) taking different approaches to renewable energy, which company is poised for growth in the future? 

This is Sailesh Tirupasur. I'm a part of Stock Card's summer internship program in 2020, and this post is a part of my Stock Battle series. I don't own these two stocks, and my goal here is to study them to decide whether to invest or not.

These stocks are apart of our Companies Shaping the Future stock list. If you want to see other stocks in this category, click here.

​Research and analysis:

Plug Power (PLUG)​ and Canadian Solar (CSIQ) are two leaders in the renewable energy industry. The two companies have a history of being at the forefront of the extremely popular niche and are pioneering developments in fuel cell and solar panel technology.

​
​Plug Power's analysis:


Plug Power is an innovator of modern hydrogen and fuel cell technology. According to the company's quarterly earnings release, "it has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs, and reduce carbon footprints reliably and cost-effectively." Based on Scott Levine's analysis, shares of Plug Power are up 180% year-to-date due to investors growing more confident that the company is on track to meet management's 2024 projection of generating sales of $1.2 billion and an operating income of $170 million. Plug Power has also strengthened its business profile by acquiring two companies in June that will aid in the business of hydrogen generation. While the company has a track record of growing its top line, many experts are wary of its future. The company's history of diluting shares also has investors skeptical about the future of the company. 
Canadian Solar's analysis:

Canadian Solar is an integrated provider of solar power products, services, and system solutions. While many solar panel companies have gone bankrupt, Canadian Solar has thrived over the past decade, and investors are quite confident in its future. The solar panel expert set a goal of solar module shipments this year and expects to increase its growth rate by over 15% by the end of this year. Canadian Solar also has a strong focus on the energy storage market with a massive 2,820 megawatt-hours of storage projects. According to the company's Stock Card, the company's profitability seems quite positive last year, with an EPS growth trend of 10%. Its last quarter's profit margin is also at around 27%, which is over 10% higher than industry benchmarks. One prevalent risk that financial analysts like Scott Levine discuss is that solar panel businesses tend to sacrifice pricing power for market share. 

Final decision:

Although the fuel cell market is expected to grow by around 13%, Plug Power's financials seem to be weak compared to Canadian Solar's. Canadian Solar has a long history of profitability and growth as well as the market for solar panels being expected to grow substantially.

Vertical Divider
Promotion
​Navigating the current uncertainties isn't easy for investors. Acorns is one of the best brokerages we have found that helps you start investing small, like investing your spare change. Check it out, and get $5 if you sign up today!


Comments are closed.

    RSS Feed


    Archives

    December 2022
    September 2022
    July 2022
    February 2022
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    January 2020
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All
    Battle
    Education
    ETF Investing
    How To Invest
    New Podcast Episode
    New Portfolio
    Portfolio Update
    Starter 2020
    Stock Card VIP Pick
    Stock Lists
    The Daily Hype
    Update
    Watchlist Worthy
    Winners And Losers

© 2017 StockCard.io. All Rights Reserved.
​​
Disclaimer: StockCard.io is not, neither operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on StockCard.io and Stock Card Weekly represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The Stock Card team may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall StockCard.io be liable to any subscriber, visitor, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on StockCard.io, or relating to the use of, or inability to use, StockCard.io or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up