Financial Survey: Zeo Energy (NASDAQ:ZEO) and Solid Power (NASDAQ:SLDP)

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

Insider & Institutional Ownership

33.7% of Solid Power shares are held by institutional investors. 7.2% of Solid Power 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 stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$17.41 million	13.88	-$65.55 million	($0.49)	-2.73
Zeo Energy	$110.07 million	0.99	-$3.00 million	($1.39)	-1.59

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.

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solid Power	-471.22%	-18.08%	-16.88%
Zeo Energy	-2.05%	-3.32%	-6.01%

Analyst Ratings

This is a summary of current ratings and target prices for Solid Power and Zeo Energy, as reported by MarketBeat.

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

Solid Power presently has a consensus target price of $2.75, suggesting a potential upside of 105.22%. Given Solid Power’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Solid Power is more favorable than Zeo Energy.

Summary

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

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.

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.