Bloom Energy vs Solar Which Is More Profitable?

Bloom Energy and Solar stocks are two popular options for investors looking to capitalize on the growing renewable energy market. Bloom Energy focuses on clean and reliable energy solutions for businesses and utilities, while solar stocks typically represent companies involved in the production of solar panels and solar energy systems. Both sectors offer attractive opportunities for long-term growth as the world transitions towards more sustainable energy sources. However, there are key differences in their technologies, market dynamics, and growth potential that investors should consider before making investment decisions.

Bloom Energy or Solar?

When comparing Bloom Energy and Solar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bloom Energy and Solar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bloom Energy has a dividend yield of -%, while Solar has a dividend yield of 10.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bloom Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.38%. On the other hand, Solar reports a 5-year dividend growth of 35.10% year and a payout ratio of 142.21%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bloom Energy P/E ratio at -45.04 and Solar's P/E ratio at 14.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bloom Energy P/B ratio is 13.54 while Solar's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bloom Energy has seen a 5-year revenue growth of -0.55%, while Solar's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bloom Energy's ROE at -28.43% and Solar's ROE at 8.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.25 for Bloom Energy and kr297.50 for Solar. Over the past year, Bloom Energy's prices ranged from $8.41 to $28.70, with a yearly change of 241.18%. Solar's prices fluctuated between kr280.50 and kr479.00, with a yearly change of 70.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.