Zeo Energy (NASDAQ:ZEO – Get Free Report) and American Superconductor (NASDAQ:AMSC – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Valuation and Earnings
This table compares Zeo Energy and American Superconductor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zeo Energy | $71.82 million | 0.17 | -$14.01 million | ($0.33) | -0.63 |
| American Superconductor | $299.15 million | 3.79 | $133.81 million | $2.98 | 7.85 |
American Superconductor has higher revenue and earnings than Zeo Energy. Zeo Energy is trading at a lower price-to-earnings ratio than American Superconductor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Zeo Energy has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, American Superconductor has a beta of 3.32, meaning that its stock price is 232% more volatile than the S&P 500.
Insider & Institutional Ownership
52.3% of American Superconductor shares are held by institutional investors. 33.5% of Zeo Energy shares are held by company insiders. Comparatively, 3.6% of American Superconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Zeo Energy and American Superconductor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
| American Superconductor | 0 | 2 | 2 | 1 | 2.80 |
American Superconductor has a consensus target price of $53.50, indicating a potential upside of 128.73%. Given American Superconductor’s stronger consensus rating and higher possible upside, analysts plainly believe American Superconductor is more favorable than Zeo Energy.
Profitability
This table compares Zeo Energy and American Superconductor’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% |
| American Superconductor | 38.63% | 24.05% | 18.04% |
Summary
American Superconductor beats Zeo Energy on 14 of the 15 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 American Superconductor
American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.
Receive News & Ratings for Zeo Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zeo Energy and related companies with MarketBeat.com's FREE daily email newsletter.
