Reviewing Acuity (NYSE:AYI) and Eos Energy Enterprises (NASDAQ:EOSE)

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

Risk and Volatility

Eos Energy Enterprises has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500. Comparatively, Acuity has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eos Energy Enterprises	$114.20 million	10.24	-$969.65 million	($6.83)	-0.47
Acuity	$4.64 billion	1.99	$396.60 million	$15.08	20.49

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eos Energy Enterprises	-246.76%	N/A	-72.43%
Acuity	11.45%	20.30%	12.43%

Insider & Institutional Ownership

54.9% of Eos Energy Enterprises shares are owned by institutional investors. Comparatively, 98.2% of Acuity shares are owned by institutional investors. 1.7% of Eos Energy Enterprises shares are owned by company insiders. Comparatively, 2.9% of Acuity shares are owned 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 Recommendations

This is a breakdown of current recommendations for Eos Energy Enterprises and Acuity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eos Energy Enterprises	1	6	2	1	2.30
Acuity	0	5	3	0	2.38

Eos Energy Enterprises presently has a consensus price target of $8.19, suggesting a potential upside of 155.06%. Acuity has a consensus price target of $390.20, suggesting a potential upside of 26.28%. Given Eos Energy Enterprises’ higher probable upside, equities research analysts plainly believe Eos Energy Enterprises is more favorable than Acuity.

Summary

Acuity beats Eos Energy Enterprises on 11 of the 15 factors compared between the two stocks.

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.

About Acuity

Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, Indy, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOCWiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. The company offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.