Zeo Energy (NASDAQ:ZEO – Get Free Report) and FuelCell Energy (NASDAQ:FCEL – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Volatility and Risk
Zeo Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.
Earnings & Valuation
This table compares Zeo Energy and FuelCell Energy”s gross 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 | 0.20 | -$14.01 million | ($0.33) | -0.73 |
| FuelCell Energy | $154.14 million | 5.45 | -$187.90 million | ($3.43) | -3.06 |
Zeo Energy has higher earnings, but lower revenue than FuelCell Energy. FuelCell Energy is trading at a lower price-to-earnings ratio than Zeo Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.8% of FuelCell Energy shares are held by institutional investors. 33.5% of Zeo Energy shares are held by insiders. Comparatively, 5.5% of FuelCell Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Zeo Energy and FuelCell Energy’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% |
| FuelCell Energy | -113.60% | -16.85% | -12.31% |
Analyst Ratings
This is a breakdown of current ratings for Zeo Energy and FuelCell Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
| FuelCell Energy | 2 | 5 | 6 | 0 | 2.31 |
FuelCell Energy has a consensus target price of $21.80, indicating a potential upside of 107.62%. Given FuelCell Energy’s stronger consensus rating and higher probable upside, analysts clearly believe FuelCell Energy is more favorable than Zeo Energy.
Summary
FuelCell Energy beats Zeo Energy on 9 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 FuelCell Energy
FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
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