Critical Analysis: Zeo Energy (NASDAQ:ZEO) & Solid Power (NASDAQ:SLDP)

Zeo Energy (NASDAQ:ZEO) and Solid Power (NASDAQ:SLDP) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Zeo Energy and Solid Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	0	0	0	0	0.00
Solid Power	1	1	2	0	2.25

Solid Power has a consensus target price of $2.75, indicating a potential upside of 97.84%. Given Solid Power’s stronger consensus rating and higher probable upside, analysts plainly believe Solid Power is more favorable than Zeo Energy.

Volatility and Risk

Zeo Energy has a beta of -0.85, indicating that its share price is 185% less volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Profitability

This table compares Zeo Energy and Solid Power’s 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%
Solid Power	-471.22%	-18.08%	-16.88%

Institutional & Insider Ownership

33.7% of Solid Power shares are owned by institutional investors. 4.2% of Zeo Energy shares are owned by insiders. Comparatively, 7.2% of Solid Power 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.

Earnings and Valuation

This table compares Zeo Energy and Solid Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeo Energy	$110.07 million	0.97	-$3.00 million	($1.39)	-1.55
Solid Power	$17.41 million	14.40	-$65.55 million	($0.49)	-2.84

Zeo Energy has higher revenue and earnings than Solid Power. Solid Power 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

Solid Power beats Zeo Energy on 8 of the 14 factors compared between the two stocks.

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.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.