Reviewing Zeo Energy (NASDAQ:ZEO) and NOVONIX (NASDAQ:NVX)

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

Volatility & Risk

Zeo Energy has a beta of -0.78, indicating that its share price is 178% less volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.9, indicating that its share price is 190% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Zeo Energy and NOVONIX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	0	0	0	0	0.00
NOVONIX	0	0	1	0	3.00

NOVONIX has a consensus target price of $4.00, indicating a potential upside of 282.78%. Given NOVONIX’s stronger consensus rating and higher probable upside, analysts clearly believe NOVONIX is more favorable than Zeo Energy.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeo Energy	$110.07 million	0.75	-$3.00 million	($1.39)	-1.20
NOVONIX	$6.88 million	24.14	-$46.25 million	N/A	N/A

Zeo Energy has higher revenue and earnings than NOVONIX.

Profitability

This table compares Zeo Energy and NOVONIX’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%
NOVONIX	N/A	N/A	N/A

Insider & Institutional Ownership

0.1% of NOVONIX shares are owned by institutional investors. 4.2% of Zeo Energy shares are owned by insiders. Comparatively, 23.7% of NOVONIX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

NOVONIX beats Zeo Energy on 10 of the 12 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 NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.