Valuation and Earnings
Hyzon Motors is a company that supplies hydrogen fuel cell systems for decarbonization applications in various industries. Its peers, on the other hand, have higher revenue and earnings, indicating that Hyzon Motors may be undervalued.
Market Performance
| Peer Company | Top-line Revenue | Earnings Per Share (EPS) | Valuation |
|---|---|---|---|
| Ballard Power Systems | $12.8M | $0.13 | $4.44 |
| Plug Power | $73.4M | $0.35 | $11.37 |
| Fastenal Company | $10.9B | $2.25 | $23.32 |
Hyzon Motors’ peers have higher revenue and earnings than Hyzon Motors. Hyzon Motors is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
- Hyzon Motors has a beta of 2.9, suggesting that its share price is 190% more volatile than the S&P 500.
- Compared to its peers, Hyzon Motors’ beta is significantly higher, indicating that its share price is 42% more volatile than the S&P 500.
Hyzon Motors is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry. However, this increased volatility may pose a risk to its investors.
Profitability
| Peer Company | Net Margin | Return on Equity (ROE) | Return on Assets (ROA) |
|---|---|---|---|
| Ballard Power Systems | 9.4% | 14.1% | 11.8% |
| Plug Power | 18.2% | 23.2% | 20.1% |
| Fastenal Company | 15.4% | 22.5% | 17.2% |
In comparison, Hyzon Motors has a net margin of 14.1%, return on equity (ROE) of 14.1%, and return on assets (ROA) of 11.8%. These numbers indicate that Hyzon Motors is a profitable company.
Insider and Institutional Ownership
- 61.4% of Hyzon Motors shares are owned by institutional investors.
- Compared to its peers, 53.1% of shares of all “Electrical industrial apparatus” companies are owned by institutional investors.
- 0.9% of Hyzon Motors shares are owned by company insiders.
- Compared to its peers, 10.7% of shares of all “Electrical industrial apparatus” companies are owned by company insiders.
Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth. Hyzon Motors’ high institutional ownership may be a positive factor for its investors.
Summary
- Hyzon Motors peers beat Hyzon Motors on 6 of the 9 factors compared.
- Hyzon Motors has a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive.
- However, Hyzon Motors has a higher net margin, return on equity, and return on assets than its peers.
In conclusion, Hyzon Motors peers beat Hyzon Motors on 6 of the 9 factors compared. However, Hyzon Motors has a higher net margin, return on equity, and return on assets than its peers. This suggests that while Hyzon Motors may be more expensive, it may also be a more profitable company in the long run.
