Industrial stocks in Canada can take several different forms. They can be service-oriented engineering companies or businesses engaged in the trade of industrial machinery, and several others in between.

The benefit of such diversification within the sector is that sector-wide trends do not hit all stocks simultaneously and to the same extent. The same market forces that might cause some industrial stocks to slump may push others up.

Industrial stocks are suitable for all sorts of investors, from conservative, play-it-safe investors to more risk-tolerant investors at any given time.

An engineering services company

WSP Global (TSX:WSP) is one of the largest engineering services companies in the world. It boasts a massive number of professionals worldwide, including 19,000 in the U.S. alone. They offer engineering services and consultation in various domains, including construction, transportation, renewables, etc. Their largest business segment in Canada nowadays is the earth and environment segment.

It's a compelling investment from a returns perspective and has been for almost a decade. In the last 10 years, the stock has returned about 650% to its investors through price appreciation and over 820% if we add in the dividends. The bull market phase is still formidable, and the stock has risen by over 37% this year alone. It is overvalued but can be blamed, at least partly, on its robust growth.

A fuel cell company

Ballard Power Systems (TSX:BLDP) represents an entirely different type of industrial stock in Canada. It represents a company built around a technology that has the potential to compete against both electric vehicles and renewable power generation but is currently facing many challenges.

That technology is fuel cells that run on hydrogen and generate power (electricity) by recombining hydrogen with water. The process is immaculate (no emissions) and can be deployed anywhere, from a vehicle to a power-generation facility.

The stock experienced a powerful growth phase post-pandemic and another in the last century (literally), but since its post-pandemic peak, the stock has mostly gone down. There have been very few upward trends, but one now has pushed the stock up 29% in just one month.

The company underwent a significant restructuring phase in September and recently landed a major order from a U.S. railway.

This is promising news, but a substantial breakthrough in hydrogen would be a far more potent catalyst. Anything that makes hydrogen more accessible as a fuel source can catapult Ballard stock to new heights. Also, Ballard's sustainability focus makes it compelling from an environmental, social, and governance investing perspective.

Foolish takeaway

The two industrial stocks offer two completely different types of return potentials. WSP is a tried and tested growth stock offering decent returns and can be held safely long-term. In contrast, Ballard Power is a solid short-term pick that might offer explosive growth potential if certain market conditions are met.