Reviewing Eos Energy Enterprises (NASDAQ:EOSE) and MSC Industrial Direct (NYSE:MSM)

MSC Industrial Direct (NYSE:MSM) and Eos Energy Enterprises (NASDAQ:EOSE) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Institutional and Insider Ownership

79.3% of MSC Industrial Direct shares are held by institutional investors. Comparatively, 54.9% of Eos Energy Enterprises shares are held by institutional investors. 19.0% of MSC Industrial Direct shares are held by insiders. Comparatively, 3.3% of Eos Energy Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MSC Industrial Direct and Eos Energy Enterprises”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSC Industrial Direct	$3.77 billion	1.38	$199.33 million	$3.66	25.49
Eos Energy Enterprises	$15.61 million	124.45	-$685.87 million	($8.36)	-0.81

MSC Industrial Direct has higher revenue and earnings than Eos Energy Enterprises. Eos Energy Enterprises is trading at a lower price-to-earnings ratio than MSC Industrial Direct, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

MSC Industrial Direct has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Eos Energy Enterprises has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Profitability

This table compares MSC Industrial Direct and Eos Energy Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSC Industrial Direct	5.37%	15.73%	8.78%
Eos Energy Enterprises	-2,095.44%	N/A	-438.89%

Analyst Ratings

This is a summary of recent recommendations and price targets for MSC Industrial Direct and Eos Energy Enterprises, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSC Industrial Direct	0	9	0	0	2.00
Eos Energy Enterprises	1	6	2	0	2.11

MSC Industrial Direct presently has a consensus target price of $90.50, suggesting a potential downside of 2.99%. Eos Energy Enterprises has a consensus target price of $13.50, suggesting a potential upside of 100.30%. Given Eos Energy Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Eos Energy Enterprises is more favorable than MSC Industrial Direct.

Summary

MSC Industrial Direct beats Eos Energy Enterprises on 9 of the 14 factors compared between the two stocks.

About MSC Industrial Direct

MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally. The company's MRO products include cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock products, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies. It offers stock-keeping units through its catalogs and brochures; e-commerce channels, including its website, mscdirect.com; inventory management solutions; and customer care centers, customer fulfillment centers, regional inventory centers, and warehouses. The company serves individual machine shops, manufacturing companies, and government agencies. MSC Industrial Direct Co., Inc. was founded in 1941 and is headquartered in Melville, New York.

About Eos Energy Enterprises

Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The company offers Znyth technology battery energy storage system (BESS), which provides the operating flexibility to manage increased grid complexity and price volatility. Its flagship product is Gen 2.3 battery module. In addition, the company offers Z3 battery module that provides utilities, independent power producers, renewables developers, and C&I customers with an alternative to lithium-ion and lead-acid monopolar batteries for critical 3- to 12-hour discharge duration applications; battery management system, which provides a remote asset monitoring capability and service to track the performance and health of BESS and identify future system performance issues through predictive analytics; and project management and commissioning services, as well as long-term maintenance plans. Eos Energy Enterprises, Inc. is headquartered in Edison, New Jersey.