A recent Zacks Investment Research analysis shows Bloom Energy is decisively outpacing rival Plug Power, leveraging its strength in stationary power to achieve superior growth forecasts and a nearly 100% stock gain in six months. The divergence underscores a potential shift in the fuel cell market, where Bloom’s focus on providing reliable, onsite power for booming data centers is attracting significant investor capital.
"Based on the above discussion, Bloom Energy currently has an edge over Plug Power, given its better movement in sales and earnings estimates, stronger liquidity, higher ROE and strong share price gains," Zacks analysts said in their report.
The analysis highlights Bloom’s projected sales growth of over 61% for 2026, dwarfing Plug Power’s 12.5%. Furthermore, Bloom boasts a return on equity of 29.44% and a current ratio of 5.98, indicating stronger profitability and financial stability compared to Plug Power’s negative 45.97% ROE and 2.31 current ratio.
While both companies utilize fuel cell technology, their market focus differs significantly. Bloom Energy’s solid oxide fuel cells are geared towards large-scale, stationary power for customers like data centers and hospitals. In contrast, Plug Power has concentrated on hydrogen fuel cells for material-handling equipment like forklifts. This positions Bloom to directly benefit from the surging power demands of the artificial intelligence industry.
The performance gap between the two clean energy firms is stark. In the last six months, Bloom Energy's shares have gained 99.2%, while Plug Power's have fallen 10.9%. This reflects investor confidence in Bloom's financial health and strategic positioning. Zacks projects Bloom's earnings per share will grow 89.5% in 2026, compared to 77.5% for Plug Power.
Plug Power, which has not reported an annual profit in its 25-year history, is attempting a turnaround with its "Project Quantum Leap" initiative. The plan aims to achieve profitability by 2028 by automating manufacturing and producing hydrogen in-house to lower costs. While the company recently secured a major 275-megawatt electrolyzer deal with Hy2gen in Canada, analysts remain cautious.
Zacks has assigned Bloom Energy a #1 "Strong Buy" rating, while Plug Power holds a #3 "Hold." The analysis suggests that while Plug Power's turnaround is a story to watch, Bloom Energy's superior financial metrics and strong foothold in the high-demand data center market make it the stronger investment at present.
This article is for informational purposes only and does not constitute investment advice.
