Reviewing QuantumScape (NYSE:QS) & Zeo Energy (NASDAQ:ZEO)

Zeo Energy (NASDAQ:ZEO) and QuantumScape (NYSE:QS) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Zeo Energy and QuantumScape”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	$110.07 million	0.79	-$3.00 million	($1.39)	-1.27
QuantumScape	N/A	N/A	-$477.94 million	($0.94)	-5.00

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

Institutional & Insider Ownership

29.9% of QuantumScape shares are held by institutional investors. 4.2% of Zeo Energy shares are held by insiders. Comparatively, 12.0% of QuantumScape shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zeo Energy and QuantumScape’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeo Energy	-2.05%	-3.32%	-6.01%
QuantumScape	N/A	-40.40%	-34.69%

Risk & Volatility

Zeo Energy has a beta of -0.78, suggesting that its share price is 178% less volatile than the S&P 500. Comparatively, QuantumScape has a beta of 4.45, suggesting that its share price is 345% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Zeo Energy and QuantumScape, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	0	0	0	0	0.00
QuantumScape	1	6	0	0	1.86

QuantumScape has a consensus target price of $6.06, suggesting a potential upside of 28.94%. Given QuantumScape’s stronger consensus rating and higher probable upside, analysts plainly believe QuantumScape is more favorable than Zeo Energy.

Summary

QuantumScape beats Zeo Energy on 7 of the 12 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 QuantumScape

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.