Plug Power vs Nikola

Plug Power and Nikola are two prominent players in the rapidly growing hydrogen fuel cell market. Plug Power, a well-established company with a proven track record in providing fuel cell solutions for material handling equipment, has recently become a hot stock pick among investors. On the other hand, Nikola, a newcomer to the industry, has garnered a lot of attention with its ambitious plans to revolutionize the transportation industry with its hydrogen-powered trucks. Both companies have their strengths and weaknesses, making them intriguing investment options for those looking to capitalize on the potential of hydrogen fuel cells.

Plug Power or Nikola?

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

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. Plug Power has a dividend yield of -%, while Nikola has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Plug Power reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nikola 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 Plug Power P/E ratio at -1.02 and Nikola's P/E ratio at -0.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Plug Power P/B ratio is 0.51 while Nikola's P/B ratio is 0.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Plug Power has seen a 5-year revenue growth of 0.88%, while Nikola's is 57.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Plug Power's ROE at -48.16% and Nikola's ROE at -141.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.03 for Plug Power and $4.18 for Nikola. Over the past year, Plug Power's prices ranged from $1.60 to $7.90, with a yearly change of 393.75%. Nikola's prices fluctuated between $4.10 and $38.40, with a yearly change of 836.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.