Zeo Energy (NASDAQ:ZEO – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Valuation & Earnings
This table compares Zeo Energy and ESS Tech”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zeo Energy | $73.24 million | 1.83 | -$3.00 million | ($1.29) | -2.11 |
| ESS Tech | $4.16 million | 3.61 | -$77.58 million | ($7.17) | -0.17 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Zeo Energy and ESS Tech, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 0 | 0 | 0 | 0 | 0.00 |
| ESS Tech | 2 | 7 | 0 | 0 | 1.78 |
ESS Tech has a consensus price target of $8.92, suggesting a potential upside of 619.09%. Given ESS Tech’s stronger consensus rating and higher probable upside, analysts clearly believe ESS Tech is more favorable than Zeo Energy.
Profitability
This table compares Zeo Energy and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zeo Energy | -2.05% | -3.32% | -6.01% |
| ESS Tech | -1,263.79% | -101.96% | -66.46% |
Insider & Institutional Ownership
46.8% of ESS Tech shares are owned by institutional investors. 4.2% of Zeo Energy shares are owned by insiders. Comparatively, 2.3% of ESS Tech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Zeo Energy has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Summary
Zeo Energy beats ESS Tech on 7 of the 13 factors compared between the two stocks.
About Zeo Energy
Zeo Energy Corp. provides residential solar energy systems, other energy efficient equipment, and related services in Florida, Texas, Arkansas, and Missouri, the United States. The company is involved in the selling and installing of residential solar energy systems that homeowners use electricity required to power their homes. Its residential solar energy systems comprise solar panels, inverters, and racking systems. It also offers insulation services, such as adding insulation to a home's attic or walls; energy efficiency equipment, including hybrid electric water heaters and swimming pool pumps; battery-based energy storage systems; and roofing services. Zeo Energy Corp. was founded in 2005 and is headquartered in New Port Richey, Florida.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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