Head-To-Head Analysis: Zeo Energy (NASDAQ:ZEO) & Spectrum Brands (NYSE:SPB)

Spectrum Brands (NYSE:SPB) and Zeo Energy (NASDAQ:ZEO) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	4.01%	6.44%	3.43%
Zeo Energy	-2.05%	-3.32%	-6.01%

Analyst Recommendations

This is a breakdown of recent recommendations for Spectrum Brands and Zeo Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	2	5	0	2.71
Zeo Energy	0	0	0	0	0.00

Spectrum Brands currently has a consensus target price of $101.57, indicating a potential upside of 62.91%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Spectrum Brands is more favorable than Zeo Energy.

Earnings and Valuation

This table compares Spectrum Brands and Zeo Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$2.97 billion	0.55	$124.80 million	$4.07	15.32
Zeo Energy	$110.07 million	0.68	-$3.00 million	($1.39)	-1.09

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

Risk & Volatility

Spectrum Brands has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.56, suggesting that its share price is 156% less volatile than the S&P 500.

Summary

Spectrum Brands beats Zeo Energy on 11 of the 12 factors compared between the two stocks.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.

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.