FuelCell Energy (NASDAQ:FCEL) & Zeo Energy (NASDAQ:ZEO) Financial Survey

FuelCell Energy (NASDAQ:FCEL) and Zeo Energy (NASDAQ:ZEO) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for FuelCell Energy and Zeo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FuelCell Energy	2	5	6	0	2.31
Zeo Energy	1	0	0	0	1.00

FuelCell Energy currently has a consensus target price of $21.80, indicating a potential upside of 78.98%. Given FuelCell Energy’s stronger consensus rating and higher possible upside, analysts plainly believe FuelCell Energy is more favorable than Zeo Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FuelCell Energy	N/A	N/A	N/A
Zeo Energy	N/A	N/A	N/A

Risk and Volatility

FuelCell Energy has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FuelCell Energy	$154.14 million	6.32	-$274.24 million	($3.43)	-3.55
Zeo Energy	$71.82 million	0.20	-$19.40 million	($0.33)	-0.76

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

Institutional & Insider Ownership

42.8% of FuelCell Energy shares are held by institutional investors. 5.5% of FuelCell Energy shares are held by company insiders. Comparatively, 33.5% of Zeo Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

FuelCell Energy beats Zeo Energy on 7 of the 11 factors compared between the two stocks.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.

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.