Financial Comparison: Zeo Energy (NASDAQ:ZEO) vs. ChargePoint (NYSE:CHPT)

Zeo Energy (NASDAQ:ZEO) and ChargePoint (NYSE:CHPT) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Profitability

This table compares Zeo Energy and ChargePoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeo Energy	-15.43%	-166.89%	-19.44%
ChargePoint	-40.59%	-723.17%	-15.49%

Volatility & Risk

Zeo Energy has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Insider and Institutional Ownership

37.8% of ChargePoint shares are held by institutional investors. 33.5% of Zeo Energy shares are held by company insiders. Comparatively, 4.2% of ChargePoint shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Zeo Energy and ChargePoint”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeo Energy	$69.35 million	0.20	-$14.01 million	($0.33)	-0.72
ChargePoint	$411.22 million	0.60	-$220.20 million	($8.68)	-1.16

Zeo Energy has higher earnings, but lower revenue than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than Zeo Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Zeo Energy and ChargePoint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	1	0	0	0	1.00
ChargePoint	3	8	1	0	1.83

ChargePoint has a consensus target price of $8.31, indicating a potential downside of 17.40%. Given ChargePoint’s stronger consensus rating and higher probable upside, analysts clearly believe ChargePoint is more favorable than Zeo Energy.

Summary

ChargePoint beats Zeo Energy on 8 of the 14 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 ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.