Better Than Bitcoin: 1 Stock to Deliver Superior Returns in 2021

Bitcoin may be booming, but this stock will reward investors both now and decades from now as the world continues to change.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. Amy’s work can be found regularly on the Financial Post and MoneyWise Canada. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog Finley, and travel. Follow Amy on LinkedIn.

Published May 1, 2021 9:00 am EDT

| More on: BLDPBLDP

Momentum seekers in the market can’t help but look to Bitcoin for wealth these days. This cryptocurrency and others even related to the industry have seen massive growth in the past few months. After a year of growth in 2020 for many tech stocks, investors want that same rush they got last year.

But if you’re looking to Bitcoin, it’s a risk. The valuation simply rides on what people believe its value to be. This is why Warren Buffett and others aren’t exactly on the side of Bitcoin.

Even still, it looks like the future is headed that way. However, if you’re wanting less risk but plenty of rewards, there’s another stock I would consider before Bitcoin.

Ballard over Bitcoin

While it might not be as sexy as Bitcoin or even electric vehicle (EV) companies like Tesla, Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) has finally hit its stride. The company and its hydrogen fuel cell technology aren’t looking to take over the personal vehicle industry. Instead, it’s looking bigger.

Ballard Power hopes to become the go-to for trucking, municipal transit buses, railways, and shipping in the new EV age. Hydrogen power can apply more than 60% of energy to vehicle propulsion. And it looks like the company has finally got that chance.

The company already has several large partnerships with companies like Ford and Daimler AG. These companies alone have invested millions into Ballard. However, with Tesla available shares in the company slumped until recently. Ballard stock instead switched gears to heavy-duty vehicles. It’s this avenue that should create major revenue now.

China deal

There are about four million commercial truck sales each year around the world. Nearly half of them are in China. The immense growth in this country leaves opportunities for companies like Ballard. That’s especially as China is also the largest consumer and producer of EVs.

Ballard already secured a $163 million deal with Weichai Power Co. back in 2018, becoming its largest shareholder with 15% stake in the company. But that investment has paid back huge with a joint venture that commissioned the production of 20,000 hydrogen fuel cell stacks per year.

As of 2020, China accounts for US$54.2 million of Ballard’s US$103.8 million in revenues. But now the company is seeking the same growth in Europe as the next opportunity. This area currently takes up US$36.4 million of the company’s revenue.

Bottom line

Bitcoin may be booming, but there are plenty of opportunities left for Ballard, as the company continues to expand. In fact, the biggest opportunity is still underway. Ballard recently made a deal to provide six hydrogen fuel cells for Canadian Pacific Railway. Should this deal turn fruitful, which it should, replacing diesel-powered vehicles with hydrogen fuel cells could be worth $4 billion worldwide by 2030, according to estimates.

And again, this would lead to even more expansion throughout the world in the railway industry. Expansion the company has already seen lead to a market share in China, Europe, and North America. While future growth could lead to some losses in the short term, management believes long-term investors will be handsomely rewarded.