Plug Power (PLUG) vs. Thermon Group (THR) Financial Review

Plug Power (NASDAQ: PLUG) and Thermon Group (NYSE:THR) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

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Plug Power has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Thermon Group has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Plug Power and Thermon Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plug Power 1 0 7 0 2.75
Thermon Group 1 1 3 0 2.40

Plug Power currently has a consensus target price of $3.60, suggesting a potential upside of 84.62%. Thermon Group has a consensus target price of $25.33, suggesting a potential upside of 4.08%. Given Plug Power’s stronger consensus rating and higher probable upside, analysts clearly believe Plug Power is more favorable than Thermon Group.

Valuation & Earnings

This table compares Plug Power and Thermon Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plug Power $103.26 million 4.32 -$127.08 million ($0.60) -3.25
Thermon Group $264.13 million 2.99 $14.64 million $0.43 56.60

Thermon Group has higher revenue and earnings than Plug Power. Plug Power is trading at a lower price-to-earnings ratio than Thermon Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

26.6% of Plug Power shares are held by institutional investors. 5.1% of Plug Power shares are held by company insiders. Comparatively, 1.2% of Thermon Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Plug Power and Thermon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plug Power -96.94% -93.76% -30.37%
Thermon Group 3.33% 5.16% 3.27%

Plug Power Company Profile

Plug Power Inc., an alternative energy technology provider, engages in the design, development, commercialization, and manufacture of hydrogen and fuel cell systems for the material handling and stationary power markets primarily in North America and Europe. It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and related hydrogen storage and dispensing infrastructure. The company offers GenDrive, a hydrogen fueled PEM fuel cell system that provides power to material handling electric vehicles; GenFuel, a hydrogen fueling delivery, generation, storage, and dispensing systems; GenCare, which is an ongoing maintenance program for GenDrive fuel cells, GenSure products, GenFuel products, and ProGen engines; and GenSure, a stationary fuel cell solution that provides scalable modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors. It also provides GenKey, a turn-key solution for transitioning to fuel cell power; ProGen, a fuel cell stack and engine technology that is used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; and GenFund, which offers financing solutions to customers. The company offers its products to distribution and manufacturing businesses, and government agencies through direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was founded in 1997 and is headquartered in Latham, New York.

Thermon Group Company Profile

Thermon Group Holdings, Inc. provides thermal engineered industrial process heating solutions for process industries in the United States, Canada, Europe, and Asia. Its products include various electric heat tracing cables, steam tracing components, tubing bundles, and instrument and control products, as well as complementary product lines. The company offers self-regulating and power limiting heating cables, which automatically increase or decrease heat output as pipe temperature changes, as well as constant wattage heating cables; mineral insulated cables for generating high temperatures used in harsh environments; skin effect trace heaters, which could heat lines up to 15 miles long from a single power point; and heat traced tube bundles for environmental gas sampling systems. It also provides heat transfer compounds and steam tracers for steam tracing solutions; control and monitoring systems for electric tracing of pipes, tanks, hoppers, and instrument sampling systems; hopper heating modules, which are self-contained heaters for use in cement plants and fossil fuel power facilities; and turnkey solutions that provide solutions for heat tracing comprising design, optimization, planning, product supply, engineering services, system integration, installation, commissioning, and maintenance. In addition, the company offers heating, sensing, monitoring, controlling, and calibration tools; and equipment for temporary electric power distribution and lighting products used in energy infrastructure construction projects and maintenance/turnaround projects. The company offers its solutions to the oil and gas, chemical processing, and power generation markets through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. is headquartered in San Marcos, Texas.

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