Investors are closely examining the comparative strengths of Bloom Energy (NYSE: BE) and Expand Energy (NASDAQ: EXE) as both companies operate within the energy sector. This analysis evaluates key factors such as institutional ownership, analyst recommendations, profitability, risk, and overall valuations to determine which company presents a more favorable investment opportunity.
Institutional Ownership and Insider Investment
Institutional ownership serves as a vital indicator of a company’s long-term growth potential. Currently, 77.0% of Bloom Energy shares are held by institutional investors, reflecting a solid level of confidence. In contrast, Expand Energy boasts an impressive 97.9% institutional ownership, suggesting even greater backing from large investment entities.
When it comes to insider ownership, Bloom Energy has 3.6% of its shares owned by insiders, while Expand Energy has a mere 0.2%. The disparity in insider investment may imply differing confidence levels among company executives regarding future prospects.
Profitability and Risk Assessment
Profitability metrics indicate that Bloom Energy outperforms Expand Energy in earnings, yet lags behind in revenue generation. In terms of risk and volatility, Bloom Energy has a beta of 3.01, indicating that its stock price is 201% more volatile than the S&P 500 index. Conversely, Expand Energy has a beta of 0.46, suggesting its stock is 54% less volatile than the market benchmark.
These figures indicate that while Bloom Energy may offer higher earnings potential, it also carries a significant risk due to its volatility, which could be a concern for risk-averse investors.
Analyst Ratings and Price Targets
Analyst recommendations provide further insights into the expectations surrounding these companies. According to MarketBeat.com, Bloom Energy has a consensus target price of $93.77, reflecting a potential downside of 4.64%. On the other hand, Expand Energy has a consensus target price of $129.44, indicating a potential upside of 17.92%. The stronger consensus rating for Expand Energy suggests that analysts view it as a more attractive option compared to Bloom Energy.
Company Profiles
Bloom Energy Corporation, headquartered in San Jose, California, specializes in the design, manufacture, and installation of solid-oxide fuel cell systems for on-site power generation. Its flagship product, the Bloom Energy Server, utilizes an innovative electrochemical process to convert various fuels into electricity without combustion. The company serves a diverse clientele, including utilities, data centers, agriculture, and healthcare sectors.
Founded in 2001 and rebranded in 2006, Bloom Energy has positioned itself as a leader in the clean energy sector.
Expand Energy Corporation operates primarily as an independent natural gas producer in the United States. Previously known as Chesapeake Energy Corporation, the company is based in Oklahoma City, Oklahoma. Its focus on natural gas production aligns with the evolving energy landscape, which increasingly values cleaner energy alternatives.
In summary, while Bloom Energy exhibits strong earnings, its higher volatility and lower revenue may deter certain investors. Conversely, Expand Energy not only shows greater institutional backing but also presents a more favorable outlook according to analyst recommendations. As investors evaluate their options, these factors will play a crucial role in determining which company may offer superior long-term returns.
