ChargePoint (NYSE:CHPT – Get Free Report) and Zeo Energy (NASDAQ:ZEO – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.
Profitability
This table compares ChargePoint and Zeo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ChargePoint | -40.59% | -723.17% | -15.49% |
| Zeo Energy | -15.43% | -166.89% | -19.44% |
Earnings and Valuation
This table compares ChargePoint and Zeo Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ChargePoint | $411.22 million | 0.60 | -$220.20 million | ($8.68) | -1.16 |
| Zeo Energy | $69.35 million | 0.20 | -$14.01 million | ($0.33) | -0.72 |
Zeo Energy has lower revenue, but higher earnings than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than Zeo Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.8% of ChargePoint shares are owned by institutional investors. 4.2% of ChargePoint shares are owned by company insiders. Comparatively, 33.5% 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 company is poised for long-term growth.
Risk and Volatility
ChargePoint has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for ChargePoint and Zeo Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ChargePoint | 3 | 8 | 1 | 0 | 1.83 |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
ChargePoint presently has a consensus target price of $8.31, indicating a potential downside of 17.40%. Given ChargePoint’s stronger consensus rating and higher possible upside, analysts clearly believe ChargePoint is more favorable than Zeo Energy.
Summary
ChargePoint beats Zeo Energy on 8 of the 14 factors compared between the two stocks.
About ChargePoint
ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, 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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