Analyzing Zeo Energy (NASDAQ:ZEO) & Vicor (NASDAQ:VICR)

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

Valuation & Earnings

This table compares Zeo Energy and Vicor”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	$69.35 million	0.34	-$14.01 million	($0.33)	-1.23
Vicor	$452.70 million	20.43	$118.56 million	$3.12	64.28

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

Volatility & Risk

Zeo Energy has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Vicor has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500.

Profitability

This table compares Zeo Energy and Vicor’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%
Vicor	30.65%	19.83%	18.18%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Zeo Energy and Vicor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	1	0	0	0	1.00
Vicor	0	2	3	0	2.60

Vicor has a consensus price target of $381.67, suggesting a potential upside of 90.32%. Given Vicor’s stronger consensus rating and higher possible upside, analysts clearly believe Vicor is more favorable than Zeo Energy.

Insider and Institutional Ownership

47.5% of Vicor shares are held by institutional investors. 33.5% of Zeo Energy shares are held by company insiders. Comparatively, 28.3% of Vicor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Vicor beats Zeo Energy on 13 of the 14 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 Vicor

Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.