Comparing Eos Energy Enterprises (NASDAQ:EOSE) & LegalZoom.com (NASDAQ:LZ)

LegalZoom.com (NASDAQ:LZ) and Eos Energy Enterprises (NASDAQ:EOSE) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Risk and Volatility

LegalZoom.com has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Eos Energy Enterprises has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Insider and Institutional Ownership

82.0% of LegalZoom.com shares are held by institutional investors. Comparatively, 54.9% of Eos Energy Enterprises shares are held by institutional investors. 5.9% of LegalZoom.com shares are held by company insiders. Comparatively, 3.3% of Eos Energy Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for LegalZoom.com and Eos Energy Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	2	4	3	0	2.11
Eos Energy Enterprises	1	6	2	0	2.11

LegalZoom.com presently has a consensus price target of $11.50, suggesting a potential upside of 35.45%. Eos Energy Enterprises has a consensus price target of $13.50, suggesting a potential downside of 22.99%. Given LegalZoom.com’s higher possible upside, research analysts clearly believe LegalZoom.com is more favorable than Eos Energy Enterprises.

Earnings and Valuation

This table compares LegalZoom.com and Eos Energy Enterprises”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$681.88 million	2.21	$29.96 million	$0.12	70.75
Eos Energy Enterprises	$15.61 million	323.69	-$685.87 million	($8.36)	-2.10

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

Profitability

This table compares LegalZoom.com and Eos Energy Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LegalZoom.com	3.05%	9.91%	3.35%
Eos Energy Enterprises	-2,095.44%	N/A	-438.89%

Summary

LegalZoom.com beats Eos Energy Enterprises on 11 of the 13 factors compared between the two stocks.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.

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.