Financial Review: Stem (NYSE:STEM) & Fluence Energy (NASDAQ:FLNC)

Stem (NYSE:STEMGet Rating) and Fluence Energy (NASDAQ:FLNCGet Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Insider & Institutional Ownership

44.0% of Stem shares are held by institutional investors. Comparatively, 82.9% of Fluence Energy shares are held by institutional investors. 0.0% of Fluence Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Stem and Fluence Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stem 0 1 6 0 2.86
Fluence Energy 1 4 12 0 2.65

Stem presently has a consensus target price of $28.00, indicating a potential upside of 259.90%. Fluence Energy has a consensus target price of $37.14, indicating a potential upside of 295.56%. Given Fluence Energy’s higher possible upside, analysts clearly believe Fluence Energy is more favorable than Stem.

Profitability

This table compares Stem and Fluence Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stem -79.46% 12.33% 6.02%
Fluence Energy N/A N/A N/A

Earnings & Valuation

This table compares Stem and Fluence Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stem $127.37 million 9.37 -$101.21 million ($8.11) -0.96
Fluence Energy $680.77 million 2.36 -$162.00 million N/A N/A

Stem has higher earnings, but lower revenue than Fluence Energy.

Summary

Fluence Energy beats Stem on 6 of the 11 factors compared between the two stocks.

About Stem (Get Rating)

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems sourced from original equipment manufacturers (OEMs). The company also provides Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage systems. In addition, it offers system design and engineering services, supply chain management, energy storage value stream optimization, warranty and preventive maintenance plan management, operation and maintenance reporting, and program enrollment and incentive management services. The company serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About Fluence Energy (Get Rating)

Fluence Energy, Inc. provides energy storage products and services, and artificial intelligence enabled digital applications for renewables and storage applications worldwide. The company sells energy storage products with integrated hardware, software, and digital intelligence, as well as engineering and delivery services to support the deployment of its storage products; operational and maintenance, and energy storage-as-a-service; and digital applications and solutions. Its energy storage products include Gridstack, a grid-scale industrial strength energy storage product; Sunstack for optimizing solar capture and delivery; and Edgestack, a commercial energy storage product that discharges when needed to flatten a facility's energy load profile. The company serves utilities, developers, and commercial and industrial customers. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.

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