Bloom Energy vs. Cummins: Which Hydrogen Stock is a Better Buy?
StockNews
Published May 18, 2021 02:35PM ET
Updated May 18, 2021 03:30PM ET
Bloom Energy vs. Cummins: Which Hydrogen Stock is a Better Buy?
The potentially devastating impact of climate change is pushing governments worldwide to seek a rapid shift by their countries into renewable energy, in which hydrogen is expected to play a key role as a fuel. Two major players in this industry, Bloom Energy (NYSE:BE) and Cummins (CMI), are expected to benefit from the industry’s progress. But which of these two stocks is a better buy now? Let’s find out.Bloom Energy Corporation (BE) and Cummins Inc . (NYSE:CMI) are two established players in the hydrogen-generated energy space. BE provides solid oxide fuel cell technology and is known mainly for its Bloom Energy Server. CMI designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power.
Much improvement in infrastructure is still required for hydrogen to become a go-to alternative energy source. But, as the world continues to move toward a greener environment, the demand for hydrogen-based energy should keep rising. Because President Biden is aiming to cut U.S. emissions by as much as 52% by 2030, the hydrogen fuel segment is expected to get a major boost, along with other alternative energy sources. So, both BE and CMI should witness increasing demand for their products.
While BE has gained 144.2% over the past year, CMI has returned 71.1%. However, in terms of their past six months’ performance, CMI is a clear winner with 15.3% returns versus BE’s 1.8%. But which of these two stocks is a better pick now? Let's find out.
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