Better Hydrogen Stock: Plug Power vs. Nikola

Core Viewpoint - Plug Power and Nikola represent two distinct investment opportunities in the hydrogen power market, with Plug Power focusing on hydrogen fuel systems for warehouse equipment and Nikola developing hydrogen fuel cell-powered semitrailer trucks [1][4]. Company Performance Plug Power - Revenue increased from $502 million in 2021 to $891 million in 2023, with a growth rate of 40% in 2022 and 27% in 2023 [3][13]. - Operating margin deteriorated from (87%) in 2021 to (151%) in 2023, indicating increasing losses [3]. - Net income loss expanded from ($460 million) in 2021 to ($1.37 billion) in 2023 [3]. - The company ended Q1 2024 with $173 million in cash but secured a $1.66 billion loan from the U.S. Department of Energy to support the establishment of green hydrogen production facilities [7]. - Analysts project a revenue increase of only 4% to $926 million in 2024, with an expected net loss narrowing to $826 million [14]. Nikola - Revenue fluctuated, starting from $0 in 2021, reaching $51 million in 2022, and dropping to $36 million in 2023 [16]. - Operating margin worsened from N/A in 2021 to (1,806%) in 2023 [16]. - Net income loss increased from ($690 million) in 2021 to ($966 million) in 2023 [16]. - The company delivered only 79 battery-powered and 35 hydrogen fuel cell-powered trucks in 2023, significantly below its target of 3,500 BEVs and 2,000 FCEVs [8]. - Nikola's cash position was $346 million at the end of Q1 2024, with a 242% increase in share count over the past three years due to constant dilution [10]. Market Position and Outlook - Both companies are currently trading at low valuations, with Plug Power at approximately $2 and Nikola at around $10 [2][18]. - Plug Power is viewed as a more compelling turnaround play due to its higher revenue, recent financial support from the DOE, and lower valuation compared to Nikola [18]. - Nikola's future growth is uncertain, with challenges in scaling production and competition from established players like Tesla [17].