Nikola vs Plug Power Which Is More Favorable?

Nikola Corporation and Plug Power are two prominent players in the electric vehicle and alternative energy industries. Both companies have shown significant growth potential and innovation in the market, attracting investors looking to capitalize on the shift towards sustainable technology. However, they have also faced their fair share of challenges and controversies, leading to fluctuations in their stock prices. Understanding the strengths and weaknesses of Nikola and Plug Power can help investors make informed decisions in their investment strategies.

Nikola or Plug Power?

When comparing Nikola and Plug Power, 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 Nikola and Plug Power.

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. Nikola has a dividend yield of -%, while Plug Power has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nikola reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Plug Power reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Nikola P/E ratio at -0.26 and Plug Power's P/E ratio at -0.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nikola P/B ratio is 0.44 while Plug Power's P/B ratio is 0.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nikola has seen a 5-year revenue growth of 57.76%, while Plug Power's is 0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nikola's ROE at -115.01% and Plug Power's ROE at -48.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.96 for Nikola and $1.92 for Plug Power. Over the past year, Nikola's prices ranged from $2.91 to $34.80, with a yearly change of 1095.88%. Plug Power's prices fluctuated between $1.60 and $5.14, with a yearly change of 221.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.