Critical Review: Eos Energy Enterprises (NASDAQ:EOSE) and Ashtead Group (OTCMKTS:ASHTY)

Ashtead Group (OTCMKTS:ASHTY) and Eos Energy Enterprises (NASDAQ:EOSE) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings and Valuation

This table compares Ashtead Group and Eos Energy Enterprises”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ashtead Group	$10.79 billion	2.67	$1.51 billion	$13.65	19.97
Eos Energy Enterprises	$15.61 million	230.05	-$685.87 million	($5.22)	-2.65

Ashtead Group has higher revenue and earnings than Eos Energy Enterprises. Eos Energy Enterprises is trading at a lower price-to-earnings ratio than Ashtead Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ashtead Group has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Eos Energy Enterprises has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.

Insider & Institutional Ownership

0.8% of Ashtead Group shares are held by institutional investors. Comparatively, 54.9% of Eos Energy Enterprises shares are held by institutional investors. 3.3% of Eos Energy Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ashtead Group and Eos Energy Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ashtead Group	13.68%	20.89%	7.26%
Eos Energy Enterprises	-3,049.55%	N/A	-270.01%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ashtead Group and Eos Energy Enterprises, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ashtead Group	1	3	2	0	2.17
Eos Energy Enterprises	1	7	2	0	2.10

Eos Energy Enterprises has a consensus target price of $7.58, indicating a potential downside of 45.13%. Given Eos Energy Enterprises’ higher possible upside, analysts clearly believe Eos Energy Enterprises is more favorable than Ashtead Group.

Summary

Ashtead Group beats Eos Energy Enterprises on 8 of the 13 factors compared between the two stocks.

About Ashtead Group

Ashtead Group plc, together with its subsidiaries, engages in the construction, industrial, and general equipment rental business in the United States, the United Kingdom, and Canada. It provides pumps, power generation, heating, cooling, scaffolding, traffic management, temporary flooring, trench shoring, and lifting services. The company offers its products and services for facilities maintenance and municipalities, such as office complexes, apartment complexes, government, hospitals, data centers, parks and recreation departments, schools and universities, shopping centers, pavement/kerb repairs, and golf course maintenance; construction of airports, highways and bridges, office buildings, data centers, schools and universities, shopping centers, residential, remodeling, manufacturing plants, and green energy plants; emergency response for fire, hurricanes, flooding, tornadoes, winter, storms, residential and health emergencies, alternative care facilities, points of distribution, and mobile testing facilities; and entertainment and special events, including national events, concerts, sporting events, film and telvision production, theme parks, festivals farmers' markets, local 5k runs, and cycle races. It operates 1,094 stores in the United States, 119 stores in Canada, and 185 stores in the United Kingdom under the Sunbelt Rentals brand. The company was founded in 1947 and is headquartered in London, the United Kingdom.

About Eos Energy Enterprises

Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The company offers Znyth technology battery energy storage system (BESS), which provides the operating flexibility to manage increased grid complexity and price volatility. Its flagship product is Gen 2.3 battery module. In addition, the company offers Z3 battery module that provides utilities, independent power producers, renewables developers, and C&I customers with an alternative to lithium-ion and lead-acid monopolar batteries for critical 3- to 12-hour discharge duration applications; battery management system, which provides a remote asset monitoring capability and service to track the performance and health of BESS and identify future system performance issues through predictive analytics; and project management and commissioning services, as well as long-term maintenance plans. Eos Energy Enterprises, Inc. is headquartered in Edison, New Jersey.