Critical Analysis: Zeo Energy (ZEO) versus The Competition

Volatility and Risk

Zeo Energy has a beta of -0.85, suggesting that its stock price is 185% less volatile than the S&P 500. Comparatively, Zeo Energy’s rivals have a beta of 7.36, suggesting that their average stock price is 636% more volatile than the S&P 500.

Profitability

This table compares Zeo Energy and its rivals’ 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%
Zeo Energy Competitors	-165.00%	-62.62%	-23.45%

Valuation & Earnings

This table compares Zeo Energy and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zeo Energy	$110.07 million	-$3.00 million	-1.65
Zeo Energy Competitors	$602.09 million	-$51.43 million	-1.67

Zeo Energy’s rivals have higher revenue, but lower earnings than Zeo Energy. Zeo Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

41.9% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are owned by institutional investors. 4.2% of Zeo Energy shares are owned by insiders. Comparatively, 15.3% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are owned 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.

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.