Better Buy: Plug Power vs. ChargePoint
With the rising number of battery electric vehicles on the roads worldwide, batteries seem to have outpaced hydrogen fuel cells as the preferred choice for automakers. At the end of 2020, there were 10 million electric vehicles, including plug-in hybrids, on roads worldwide. By comparison, there were a mere 35,000 fuel cell electric vehicles globally at the end of last year.
Yet, hydrogen fuel cells offer a few advantages over batteries, and can potentially be far more useful in some areas such as marine, heavy-duty vehicles, and certain stationary applications. Besides, both Plug Power (NASDAQ: PLUG) and ChargePoint Holdings (NYSE: CHPT) will need a lot more than sectoral tailwinds to succeed. Let's see which of the two companies has better long-term prospects.
Plug Power's hydrogen fuel cells find varying applications. They can be used in forklifts, as a backup power source, and in hydrogen-powered vehicles. More than 90% of the company's revenue right now comes from its materials handling segment, which provides fuel cells for use in forklifts. The company is focusing on expanding into the electric vehicles market and has formed partnerships with automaker Renault and Korea's SK Group to this end.
Source Fool.com
