BLDP vs. BE: Which Hydrogen Power Stock Has Better Potential for 2026?

Hydrogen fuel cell technology represents an attractive long-term investment as governments and industries intensify efforts to decarbonize energy and transportation. Offering zero-emission operation, high efficiency and rapid refueling, fuel cells are well-suited for heavy transport, shipping, aviation services and industrial power. Expanding policy support, including subsidies, carbon pricing mechanisms and national hydrogen strategies, is reducing costs and accelerating adoption and commercialization.

Investment momentum is being reinforced by improving electrolyzer technology, falling renewable energy costs and the buildout of hydrogen infrastructure. As green hydrogen scales, fuel cells are becoming more cost-competitive, strengthening their role in the global energy transition and supporting long-term growth and value creation.

Bloom Energy BE is well positioned to benefit from increasing demand for reliable, low-carbon on-site power solutions. Its solid-oxide fuel cell technology provides highly efficient, ultra-clean electricity, helping customers reduce reliance on an increasingly strained grid. Growing momentum in green hydrogen, supportive policy frameworks and ongoing improvements in Bloom Energy’s electrolyzer platform strengthen its long-term outlook. As corporations and data centers seek dependable and sustainable power options, Bloom Energy is set to play an expanding role in the global energy transition.

Ballard Power Systems BLDP offers a compelling investment case as a leading provider of proton exchange membrane (“PEM”) fuel cell technology for decarbonization markets. Its high-performance, scalable fuel cells are well suited for heavy-duty transport applications, including buses, trucks, rail and marine. Ongoing product launches and PEM technological improvements enhance its competitive positioning, while falling costs and rising adoption support Ballard’s ability to gain market share and drive long-term growth and shareholder value in the hydrogen economy.

Both companies have strong backlogs due to the increasing acceptance of fuel cell technology as an alternative to conventional power generation. Amid rising demand in the usage of fuel cell technology for clean electricity production, let us discuss fundamentals of both companies.

BLDP & BE’s Earnings Estimates

The Zacks Consensus Estimate for BLDP’s earnings per share in 2025 and 2026 indicates a year-over-year increase of 43.86% and 25.78%, respectively.

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

BLDP & BE’s Sales Estimates

The Zacks Consensus Estimate for BLDP’s revenues in 2026 indicates a year-over-year increase of 3.03%.

The same for BE’s revenues in 2026 implies a year-over-year increase of 37.74%.

Valuation

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

BE’s shares are presently trading at P/S F12M of 8.02X compared with BLDP’s 7.85X.

Return on Invested Capital

The return on invested capital (“ROIC”) measures how well a company generates returns on the money it invests. ROIC is a key indicator of a company's profitability and operational efficiency. 

BE’s current ROIC is 5.22% against BLDP’s negative 16.75%. It indicates BE is using the funds more efficiently than BLDP.

Price Performance

In the last six months, shares of Ballard Power have gained 59.6% compared with Bloom Energy’s rally of 299.5%.

Price Performance (Six months)

Summing Up

Bloom Energy and Ballard Power are both working tirelessly to provide reliable, emission-free electricity to their customers.

BE’s strong earnings and sales estimate movement, higher ROIC and price performance make it more attractive compared with BLDP.

Both companies are currently having a Zacks Rank #2 (Buy) but based on the above discussion, it appears Bloom Energy has an edge over Ballard Power going into the new year. 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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