ESS Tech (NYSE:GWH – Get Free Report) and Zeo Energy (NASDAQ:ZEO – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Earnings and Valuation
This table compares ESS Tech and Zeo Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ESS Tech | $4.16 million | 3.61 | -$77.58 million | ($7.17) | -0.17 |
| Zeo Energy | $73.24 million | 1.83 | -$3.00 million | ($1.29) | -2.11 |
Profitability
This table compares ESS Tech and Zeo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ESS Tech | -1,263.79% | -101.96% | -66.46% |
| Zeo Energy | -2.05% | -3.32% | -6.01% |
Institutional and Insider Ownership
46.8% of ESS Tech shares are owned by institutional investors. 2.3% of ESS Tech shares are owned by insiders. Comparatively, 4.2% of Zeo Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for ESS Tech and Zeo Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ESS Tech | 2 | 7 | 0 | 0 | 1.78 |
| Zeo Energy | 0 | 0 | 0 | 0 | 0.00 |
ESS Tech currently has a consensus target price of $8.92, suggesting a potential upside of 619.09%. Given ESS Tech’s stronger consensus rating and higher possible upside, research analysts clearly believe ESS Tech is more favorable than Zeo Energy.
Risk and Volatility
ESS Tech has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.
Summary
Zeo Energy beats ESS Tech on 7 of the 13 factors compared between the two stocks.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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.
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