Bloom Energy BE and Plug Power PLUG are two fuel-cell and hydrogen power companies focused on clean energy applications, including distributed power and transportation/power-generation markets.

As clean energy gains importance and new technologies emerge to produce it, companies like Bloom Energy and Plug Power are attracting attention. Both companies are advancing clean energy generation through innovative technologies.

Bloom Energy is a global leader in on-site power generation, gaining from increasing demand for clean energy from AI-driven data centers, as well as from customers increasingly adopting distributed energy solutions to bypass transmission and distribution constraints.

Plug Power designs, develops, and sells hydrogen products and solutions in Europe, Australia, North America, and internationally. Plug Power delivers clean energy solutions through hydrogen fuel cell technology, with its GenDrive systems improving efficiency in material-handling operations.

Let's delve deeper to find out which stock among BE and PLUG is better positioned for sustainable growth.

The Case for BE

Bloom Energy’s investment thesis centers on expanding its onsite power platform to address rising demand for reliable, rapidly deployable and cost-effective electricity. The company is positioned to benefit from AI-driven data-center expansion, grid-capacity constraints, growing reliability needs and government support for energy security and domestic manufacturing.

Its proprietary Energy Server uses solid oxide fuel-cell technology to generate electricity through an electrochemical process rather than combustion, providing efficient, resilient and lower-emission onsite power. The modular platform connects directly to customers’ electrical systems, reducing transmission losses and scaling from hundreds of kilowatts to several hundred megawatts. These capabilities make it suitable for data centers, advanced manufacturing, cryptocurrency mining and other power-intensive operations.

Bloom Energy continues to invest in research and development to improve efficiency, reduce manufacturing costs and strengthen profitability. Supportive clean-energy policies and incentives could further accelerate adoption and innovation.

Over time, the company aims to establish solid oxide fuel cells as a preferred onsite power solution for critical infrastructure. With electricity demand outpacing grid expansion, Bloom Energy’s differentiated technology, scalable platform and exposure to high-growth markets support its long-term prospects in distributed, reliable and lower-emission power generation.

The Case for PLUG

Plug Power is developing an integrated green hydrogen ecosystem encompassing electrolyzers, fuel cells, hydrogen production, storage and distribution. Its long-term success depends heavily on broader commercial hydrogen adoption.

The company’s GenDrive systems offer rapid refueling, longer operating hours and lower downtime, improving productivity for material-handling customers. Customer engagement remains strong, supported by demonstrated productivity gains, better product reliability and reduced dependence on the electrical grid. Plug Power’s vertically integrated platform also positions it to benefit from logistics decarbonization and wider clean-energy adoption.

Cost-reduction initiatives under Project Quantum Leap are beginning to deliver results. Management expects gross margin to improve sequentially throughout 2026, supported by higher volumes, a more favorable business mix and continued cost discipline.

However, Plug Power remains a high-risk investment due to persistent operating losses, substantial cash burn, execution challenges and recurring capital raises that have diluted existing shareholders.

PLUG is yet to be profitable. Though the long-term prospects remain promising, a meaningful earnings recovery is unlikely in the near term.

Estimates for BE and PLUG

The Zacks Consensus Estimate for BE’s 2026 revenues implies an 83.9% increase, and that for EPS suggests a 176.3% year-over-year increase. EPS estimates for 2026 have moved 3 cents north in the last 30 days.

The Zacks Consensus Estimate for PLUG’s 2026 revenues implies a 14.7% increase and that for EPS indicates a 74.7% increase. The consensus estimate for 2026 earnings witnessed no movement in the last 30 days.

Price Performance of BE and PLUG

BE shares have gained 112.8% year to date, while PLUG shares have gained 6.1% in the same time.

Are BE and PLUG Shares Expensive?

BE is trading at a forward 12-month price-to-sales multiple of 10.23, higher than its median of 2.67 over the past five years. PLUG’s forward 12-month price-to-sales multiple sits at 3.19, higher than its median of 2.22 over the past five years.

PLUG is cheaper than BE presently.

Conclusion

Bloom Energy continues to demonstrate resilient performance, supported by rising demand for clean energy and its ability to provide rapid and dependable power solutions. Demand for the company’s offerings is expected to grow further as it delivers customized clean energy solutions directly to customers, reducing reliance on traditional transmission and distribution infrastructure.

Plug Power is more concentrated on hydrogen fuel cells for material-handling equipment, like forklifts and applications in transportation. It is also investing in research and utilizing the fuel cell technology to provide reliable power to its customers. However, it has been incurring losses.

BE sports a Zacks Rank #1 (Strong Buy) while PLUG carries a Zacks Rank #2 (Buy). Price appreciation and analyst sentiment give BE an edge over PLUG. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Plug Power, Inc. (PLUG): Free Stock Analysis Report

Bloom Energy Corporation (BE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research