American Superconductor (NASDAQ:AMSC – Get Free Report) and Zeo Energy (NASDAQ:ZEO – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Profitability
This table compares American Superconductor and Zeo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Superconductor | 38.63% | 24.05% | 18.04% |
| Zeo Energy | -15.43% | -166.89% | -19.44% |
Analyst Recommendations
This is a summary of current ratings and target prices for American Superconductor and Zeo Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Superconductor | 0 | 2 | 2 | 1 | 2.80 |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
American Superconductor currently has a consensus price target of $53.50, suggesting a potential upside of 110.05%. Given American Superconductor’s stronger consensus rating and higher possible upside, analysts plainly believe American Superconductor is more favorable than Zeo Energy.
Institutional & Insider Ownership
52.3% of American Superconductor shares are owned by institutional investors. 3.6% of American Superconductor shares are owned by company insiders. Comparatively, 33.5% of Zeo Energy shares are owned 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.
Valuation and Earnings
This table compares American Superconductor and Zeo Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Superconductor | $299.15 million | 4.13 | $133.81 million | $2.98 | 8.55 |
| Zeo Energy | $69.35 million | 0.16 | -$14.01 million | ($0.33) | -0.59 |
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 & Volatility
American Superconductor has a beta of 3.32, indicating that its share price is 232% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Summary
American Superconductor beats Zeo Energy on 14 of the 15 factors compared between the two stocks.
About American Superconductor
American Superconductor Corporation (AMSC) develops products and services for the electric power and wind energy industries. Its Grid business provides power electronics and related systems designed to improve transmission capacity, voltage regulation and grid reliability. Products include D-VAR systems, which help manage voltage and stabilize electrical networks. Through its Wind business, AMSC supplies wind turbine designs, control systems and engineering services to wind turbine manufacturers and developers.
About Zeo Energy
Zeo Energy Corp. (NASDAQ: ZEO) is a residential clean-energy company that provides solar power and related energy solutions to homeowners in the United States. Its offerings are designed to help customers generate, store and manage electricity while reducing their reliance on traditional utility power. The company’s products and services include residential solar photovoltaic systems, battery energy storage and other energy-efficiency solutions. Zeo provides support across the customer process, including system design, sales, permitting, installation and ongoing service.
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