Zeo Energy (NASDAQ:ZEO) and Brookfield Renewable (NYSE:BEPC) Head to Head Analysis

Zeo Energy (NASDAQ:ZEO) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Zeo Energy and Brookfield Renewable, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeo Energy	1	0	0	0	1.00
Brookfield Renewable	1	1	3	0	2.40

Brookfield Renewable has a consensus target price of $40.00, indicating a potential upside of 1.65%. Given Brookfield Renewable’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield Renewable is more favorable than Zeo Energy.

Insider and Institutional Ownership

75.1% of Brookfield Renewable shares are held by institutional investors. 56.2% of Zeo Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Zeo Energy and Brookfield Renewable”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeo Energy	$73.24 million	0.80	-$3.19 million	($0.75)	-1.36
Brookfield Renewable	$5.88 billion	0.97	$236.00 million	($0.89)	-44.21

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

Profitability

This table compares Zeo Energy and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeo Energy	-17.91%	N/A	-23.34%
Brookfield Renewable	-34.58%	-12.74%	-3.20%

Risk and Volatility

Zeo Energy has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

Brookfield Renewable beats Zeo Energy on 9 of the 14 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 Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.