Zeo Energy (NASDAQ:ZEO – Get Free Report) and American Superconductor (NASDAQ:AMSC – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Zeo Energy and American Superconductor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
| American Superconductor | 0 | 2 | 2 | 1 | 2.80 |
American Superconductor has a consensus target price of $53.50, indicating a potential upside of 122.81%. Given American Superconductor’s stronger consensus rating and higher probable upside, analysts clearly believe American Superconductor is more favorable than Zeo Energy.
Valuation & Earnings
| 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) | -0.75 |
| American Superconductor | $299.15 million | 3.89 | $133.81 million | $2.98 | 8.06 |
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.
Volatility and Risk
Zeo Energy has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, American Superconductor has a beta of 3.32, suggesting that its share price is 232% more volatile than the S&P 500.
Profitability
This table compares Zeo Energy and American Superconductor’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% |
| American Superconductor | 38.63% | 24.05% | 18.04% |
Institutional & Insider Ownership
52.3% of American Superconductor shares are owned by institutional investors. 33.5% of Zeo Energy shares are owned by insiders. Comparatively, 3.6% of American Superconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
American Superconductor beats Zeo Energy on 14 of the 15 factors compared between the two stocks.
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.
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.
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