Zeo Energy (NASDAQ:ZEO – Get Free Report) and nVent Electric (NYSE:NVT – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Zeo Energy has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Zeo Energy and nVent Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeo Energy | 1 | 0 | 0 | 0 | 1.00 |
| nVent Electric | 0 | 2 | 15 | 2 | 3.00 |
Institutional & Insider Ownership
90.0% of nVent Electric shares are held by institutional investors. 33.5% of Zeo Energy shares are held by company insiders. Comparatively, 1.7% of nVent Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Zeo Energy and nVent Electric”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zeo Energy | $69.35 million | 0.22 | -$14.01 million | ($0.33) | -0.79 |
| nVent Electric | $3.89 billion | 6.72 | $710.20 million | $3.66 | 44.14 |
nVent Electric has higher revenue and earnings than Zeo Energy. Zeo Energy is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zeo Energy and nVent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zeo Energy | -15.43% | -166.89% | -19.44% |
| nVent Electric | 12.38% | 18.85% | 10.30% |
Summary
nVent Electric beats Zeo Energy on 14 of the 15 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 nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
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