FCEL vs. BE: Which Hydrogen Power Stock Has Better Potential for Now?

Hydrogen fuel energy stocks present a compelling long-term investment case as global clean-energy demand surges. Green and low-carbon hydrogen can decarbonize and provide clean electricity to hard-to-electrify sectors where batteries fall short. As countries tighten emissions targets and subsidize hydrogen infrastructure, early-mover firms that scale electrolysis, storage and distribution may capture outsized market share and favorable contract flow. FuelCell Energy FCEL and Bloom Energy BE stand out in the stationary fuel-cell industry, delivering on-site power systems that generate electricity through an efficient electrochemical reaction instead of conventional combustion.

Hydrogen-based electricity generators also mitigate renewable intermittency and grid bottlenecks. This hydrogen-based electricity generation has long-term growth potential but is still in an early development stage. Investors should favor companies with proven technology partnerships, low production costs plans and access to offtake contracts while watching policy, price and execution risks.

FuelCell provides a strategic way to tap into the rising demand for clean, dependable and distributed power technologies. The company is well-positioned to benefit from growing momentum in hydrogen generation, carbon capture solutions and on-site energy platforms that ease grid pressure and advance emission-reduction targets. Supported by government incentives and increasing corporate decarbonization efforts, FuelCell’s ongoing technological improvements strengthen its ability to capture long-term opportunities across the clean-energy and hydrogen markets.

Bloom Energy is poised to capitalize on rising demand for dependable, low-carbon, on-site power technologies. Its solid-oxide fuel cells deliver highly efficient, ultra-clean electricity, enabling businesses to reduce dependence on a stressed power grid. Momentum in green hydrogen, favorable policy support and continued improvements in Bloom Energy’s electrolyzer platform enhance its long-term prospects. With corporations and data centers prioritizing reliable, sustainable backup power, Bloom Energy is well-positioned to secure a growing role in the global energy transition.

FuelCell and Bloom Energy both belong to Zacks Alternative Energy - Other industry and hold solid positions in the clean-energy landscape. Taking a closer look at their core fundamentals can offer a clearer perspective on how they stack up against each other and which company may ultimately present the stronger investment opportunity. Both companies have strong backlogs due to the increasing acceptance of fuel cell technology as an alternative to conventional power generation.

FCEL & BE’s Earnings Estimates

The Zacks Consensus Estimate for FCEL’s earnings per share in 2025 and 2026 reflects a year-over-year increase of 1.56% and 56.26%, respectively.

The same for BE’s earnings per share in 2025 and 2026 reflects a year-over-year increase of 85.71% and 78.75%, respectively.

FCEL & BE’s Sales Estimates

The Zacks Consensus Estimate for FCEL’s revenues in 2025 and 2026 reflects a year-over-year increase of 34.69% and 21.47%, respectively.

The same for BE’s revenues in 2025 and 2026 reflects a year-over-year increase of 28.60% and 37.74%, respectively.

Debt to Capital

Borrowing plays a crucial role for hydrogen fuel-cell companies, as the industry is extremely capital-intensive and still moving through early growth and commercialization stages. These firms need substantial funding for research and development, production expansion and large-scale project builds.

FCEL’s current debt to capital is 19.4% compared with BE’s 62.57%.

Valuation

Bloom Energy’s shares are trading at a premium compared with FuelCell’s shares on a Price/Sales F12M basis.

BE’s shares are presently trading at P/S F12M of 9.4X compared with FuelCell’s 1.07X.

Price Performance

In the last month, shares of FuelCell have lost 24% compared with Bloom Energy’s decline of 24.4%.

Price Performance (One month)

Summing Up

FuelCell and Bloom Energy design and market fuel-cell and hydrogen-based energy technologies, operating within the clean power and broader alternative energy industry.

Based on the above discussion, it is evident that FuelCell has a marginal edge over Bloom Energy based on better sales growth in 2025, lower debt to capital and a cheaper valuation.
 
So, at present, the Zacks Rank #2 (Buy) stock, FuelCell, is a better choice than Bloom Energy, which has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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