UQM Technologies (NYSE: UQM) and Babcock (NYSE:BW) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitabiliy, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares UQM Technologies and Babcock’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UQM Technologies $5.01 million 8.44 -$16.94 million N/A N/A
Babcock $1.57 billion 0.33 -$53.15 million ($2.68) -3.99

UQM Technologies has higher revenue, but lower earnings than Babcock.

Insider and Institutional Ownership

92.0% of Babcock shares are held by institutional investors. 2.5% of Babcock shares are held by 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 UQM Technologies and Babcock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UQM Technologies -158.22% -78.26% -59.36%
Babcock -8.51% -12.96% -5.06%

Analyst Recommendations

This is a breakdown of current ratings and price targets for UQM Technologies and Babcock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UQM Technologies 0 0 1 0 3.00
Babcock 1 2 1 0 2.00

UQM Technologies presently has a consensus price target of $2.00, suggesting a potential upside of 129.89%. Babcock has a consensus price target of $15.67, suggesting a potential upside of 46.42%. Given UQM Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe UQM Technologies is more favorable than Babcock.

Summary

Babcock beats UQM Technologies on 6 of the 10 factors compared between the two stocks.

About UQM Technologies

UQM Technologies, Inc., (UQM) develops, manufactures and sells electric motors, generators, power electronic controllers and fuel cell compressors for the commercial truck, bus, automotive, marine, military and industrial markets. The Company’s focus is incorporating its technology as propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles, delivering the heart of the electric vehicle. UQM’s principal products include propulsion motors and generators with power ratings from 50 kilowatts to 250 kilowatts, auxiliary motors and electronic controls and direct current (DC)-to-DC converters. The Company has developed two basic frame size propulsion systems: the PowerPhase Pro for passenger car, light commercial applications, light duty marine and other lighter duty applications, and the PowerPhase HD lineup of products for heavier commercial bus and truck applications and heavier duty marine and other applications.

About Babcock

Babcock & Wilcox Enterprises, Inc. is a technology-based provider of fossil and renewable power generation and environmental equipment that includes a suite of boiler products and environmental systems, and services for power and industrial uses. The Company operates in three segments: Power, Renewable and Industrial. Through its Power segment, the Company provides the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. The Renewable segment provides steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries, and plant operations and maintenance services for its systems and equipment. The Industrial segment focuses on custom-engineered cooling, environmental, noise abatement and industrial equipment along with related aftermarket services.

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