FuelCell Energy (NASDAQ:FCEL – Get Free Report) and Zeo Energy (NASDAQ:ZEO – 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 institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Risk & Volatility
FuelCell Energy has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
Institutional & Insider Ownership
42.8% of FuelCell Energy shares are owned by institutional investors. 5.5% of FuelCell Energy shares are owned by insiders. Comparatively, 33.5% of Zeo Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares FuelCell Energy and Zeo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FuelCell Energy | N/A | N/A | N/A |
| Zeo Energy | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current ratings for FuelCell Energy and Zeo Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FuelCell Energy | 2 | 5 | 6 | 0 | 2.31 |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
FuelCell Energy currently has a consensus price target of $21.80, indicating a potential upside of 78.98%. Given FuelCell Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe FuelCell Energy is more favorable than Zeo Energy.
Valuation & Earnings
This table compares FuelCell Energy and Zeo Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FuelCell Energy | $154.14 million | 6.32 | -$274.24 million | ($3.43) | -3.55 |
| Zeo Energy | $71.82 million | 0.20 | -$19.40 million | ($0.33) | -0.76 |
Zeo Energy has lower revenue, but higher earnings 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.
Summary
FuelCell Energy beats Zeo Energy on 7 of the 11 factors compared between the two stocks.
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.
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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