Zeo Energy (NASDAQ:ZEO – Get Free Report) and LSI Industries (NASDAQ:LYTS – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Zeo Energy and LSI Industries’ 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% |
| LSI Industries | 3.28% | 7.51% | 3.71% |
Volatility and Risk
Zeo Energy has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, LSI Industries has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Zeo Energy and LSI Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
| LSI Industries | 0 | 2 | 3 | 0 | 2.60 |
LSI Industries has a consensus target price of $29.00, indicating a potential upside of 39.42%. Given LSI Industries’ stronger consensus rating and higher probable upside, analysts plainly believe LSI Industries is more favorable than Zeo Energy.
Insider & Institutional Ownership
73.9% of LSI Industries shares are held by institutional investors. 33.5% of Zeo Energy shares are held by company insiders. Comparatively, 4.7% of LSI Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Zeo Energy and LSI Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zeo Energy | $69.35 million | 0.21 | -$14.01 million | ($0.33) | -0.76 |
| LSI Industries | $689.40 million | 1.13 | $22.58 million | $0.67 | 31.04 |
LSI Industries has higher revenue and earnings than Zeo Energy. Zeo Energy is trading at a lower price-to-earnings ratio than LSI Industries, indicating that it is currently the more affordable of the two stocks.
Summary
LSI Industries beats Zeo Energy on 12 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 LSI Industries
LSI Industries Inc. produces and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, and Latin America. It operates through two segments, Lighting and Display Solutions. The Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting fixture and control solutions in the commercial and industrial markets. This segment also offers lighting control products, including sensors, photocontrols, dimmers, motion detection, and Bluetooth systems to support lighting fixtures; and designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies. The Display Solutions segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements. This segments products and services include signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated and non-refrigerated merchandising displays. This segment also provides project management services comprising installation management, site surveys, permitting, and content management; and manages and executes the implementation of large rollout programs. It serves refueling and convenience store, parking lot and garage, quick-service restaurant, retail and grocery store, automotive, warehouse, sports court, and field markets, as well as warehouses. LSI Industries Inc. was founded in 1976 and is headquartered in Cincinnati, Ohio.
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