Comparing QuantumScape (NYSE:QS) & Zeo Energy (NASDAQ:ZEO)

QuantumScape (NYSE:QS) and Zeo Energy (NASDAQ:ZEO) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for QuantumScape and Zeo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	1	6	0	0	1.86
Zeo Energy	0	0	0	0	0.00

QuantumScape presently has a consensus target price of $6.06, indicating a potential upside of 45.15%. Given QuantumScape’s stronger consensus rating and higher possible upside, analysts plainly believe QuantumScape is more favorable than Zeo Energy.

Risk & Volatility

QuantumScape has a beta of 4.45, suggesting that its share price is 345% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.78, suggesting that its share price is 178% less volatile than the S&P 500.

Institutional and Insider Ownership

29.9% of QuantumScape shares are held by institutional investors. 12.0% of QuantumScape shares are held by insiders. Comparatively, 4.2% of Zeo Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares QuantumScape and Zeo Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-40.40%	-34.69%
Zeo Energy	-2.05%	-3.32%	-6.01%

Valuation & Earnings

This table compares QuantumScape and Zeo Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$477.94 million	($0.94)	-4.44
Zeo Energy	$110.07 million	0.68	-$3.00 million	($1.39)	-1.09

Zeo Energy has higher revenue and earnings than QuantumScape. QuantumScape 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

QuantumScape beats Zeo Energy on 7 of the 12 factors compared between the two stocks.

About QuantumScape

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.

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.