Comparing Energem (NASDAQ:ENCP) & FuelCell Energy (NASDAQ:FCEL)

Energem (NASDAQ:ENCP) and FuelCell Energy (NASDAQ:FCEL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Energem and FuelCell Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energem	0	0	0	0	N/A
FuelCell Energy	1	1	0	0	1.50

FuelCell Energy has a consensus target price of $2.00, indicating a potential upside of 100.00%. Given FuelCell Energy’s higher possible upside, analysts clearly believe FuelCell Energy is more favorable than Energem.

Insider & Institutional Ownership

43.0% of Energem shares are held by institutional investors. Comparatively, 42.8% of FuelCell Energy shares are held by institutional investors. 64.2% of Energem shares are held by insiders. Comparatively, 0.3% of FuelCell Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Energem and FuelCell Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energem	N/A	N/A	$50,000.00	$0.06	179.50
FuelCell Energy	$123.39 million	3.66	-$107.57 million	($0.27)	-3.70

Energem has higher earnings, but lower revenue than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than Energem, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Energem has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 3.76, suggesting that its share price is 276% more volatile than the S&P 500.

Profitability

This table compares Energem and FuelCell Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energem	N/A	-3.12%	0.92%
FuelCell Energy	-105.56%	-15.89%	-11.81%

Summary

Energem beats FuelCell Energy on 8 of the 11 factors compared between the two stocks.

About Energem

Energem Corp. does not have significant operations. The company focuses on effecting a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. It intends to focus a target business operating in the oil and gas and other potential renewable energy business, as well as other adjacent services, including industrials and technologies. The company was incorporated in 2021 and is based in Kuala Lumpur, Malaysia. Energem Corp. operates as a subsidiary of Energem LLC.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.