Financial Analysis: Zeo Energy (NASDAQ:ZEO) versus Enovix (NASDAQ:ENVX)

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

Institutional and Insider Ownership

50.9% of Enovix shares are owned by institutional investors. 15.7% of Enovix shares are owned by company insiders. Comparatively, 4.2% of Zeo Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Enovix has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.8, indicating that its share price is 180% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enovix	-1,180.21%	-102.19%	-42.53%
Zeo Energy	N/A	-21.30%	-3.63%

Analyst Recommendations

This is a breakdown of current recommendations for Enovix and Zeo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovix	0	2	8	1	2.91
Zeo Energy	0	0	0	0	0.00

Enovix presently has a consensus price target of $20.50, suggesting a potential upside of 43.06%. Given Enovix’s stronger consensus rating and higher probable upside, analysts plainly believe Enovix is more favorable than Zeo Energy.

Valuation & Earnings

This table compares Enovix and Zeo Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovix	$20.74 million	122.98	-$214.07 million	($1.61)	-8.90
Zeo Energy	$110.07 million	0.88	-$3.00 million	N/A	N/A

Zeo Energy has higher revenue and earnings than Enovix.

Summary

Enovix beats Zeo Energy on 8 of the 13 factors compared between the two stocks.

About Enovix

Enovix Corporation designs, develops, and manufactures lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, 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.