QuantumScape (NYSE:QS – Get Free Report) and Zeo Energy (NASDAQ:ZEO – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
Insider & Institutional Ownership
29.9% of QuantumScape shares are owned by institutional investors. 12.0% of QuantumScape 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, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
QuantumScape has a beta of 4.45, indicating that its stock price is 345% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.78, indicating that its stock price is 178% less volatile than the S&P 500.
Analyst Ratings
| 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 currently has a consensus target price of $6.06, indicating a potential upside of 33.92%. Given QuantumScape’s stronger consensus rating and higher probable upside, research analysts plainly believe QuantumScape is more favorable than Zeo Energy.
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) | -4.81 |
| Zeo Energy | $110.07 million | 0.75 | -$3.00 million | ($1.39) | -1.20 |
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.
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% |
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.
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