Financial Analysis: Zeo Energy (NASDAQ:ZEO) and Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBM) and Zeo Energy (NASDAQ:ZEO) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Electra Battery Materials 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
Electra Battery Materials	N/A	N/A	-$47.90 million	($3.56)	-0.42
Zeo Energy	$110.07 million	1.16	-$3.00 million	N/A	N/A

Zeo Energy has higher revenue and earnings than Electra Battery Materials.

Risk and Volatility

Electra Battery Materials has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.8, meaning that its share price is 180% less volatile than the S&P 500.

Institutional and Insider Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by insiders. Comparatively, 4.2% of Zeo Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-39.33%	-19.52%
Zeo Energy	N/A	-21.30%	-3.63%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Electra Battery Materials and Zeo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	1	1	3.50
Zeo Energy	0	0	0	0	0.00

Electra Battery Materials currently has a consensus price target of $5.20, indicating a potential upside of 248.99%. Given Electra Battery Materials’ stronger consensus rating and higher possible upside, research analysts clearly believe Electra Battery Materials is more favorable than Zeo Energy.

Summary

Electra Battery Materials beats Zeo Energy on 7 of the 11 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

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.