Plug Power vs. Occidental Petroleum: A Tale of Two Energy Investments
Investors in 2026 face a choice between two energy-focused investments: Plug Power and Occidental Petroleum. While Plug Power is a major provider of green hydrogen and fuel-cell solutions, it faces high customer concentration risks with Walmart as its largest customer. In contrast, Occidental Petroleum generates billions in free cash flow while pivoting its business model toward oil production and low-carbon ventures.
Plug Power's FY 2025 revenue reached nearly $709.9 million, reflecting a growth rate of approximately 12.9% over the previous year. However, the company reported a net loss of approximately $1.6 billion for the same period, resulting in a net margin of -229.8%. The debt-to-equity ratio was 1.0x as of its December 2025 balance sheet.
Occidental Petroleum's FY 2025 revenue declined by roughly 20.3% compared to the prior year but still achieved net income of approximately $2.4 billion, resulting in a net margin of 11.0%. The company generated $4.1 billion in free cash flow and has a debt-to-equity ratio of 0.7x.
The author recommends Occidental Petroleum as a more attractive investment due to its profitability, efficient operations, and significant free cash flow. Plug Power's high customer concentration risk and lack of profitability make it less appealing, despite its potential in the green hydrogen market.