Zeo Energy (NASDAQ:ZEO) vs. Diversified Energy (NYSE:DEC) Head to Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Zeo Energy	-17.91%	N/A	-23.34%

Risk and Volatility

Diversified Energy has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Zeo Energy has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500.

Insider and Institutional Ownership

26.5% of Diversified Energy shares are held by institutional investors. 56.2% of Zeo Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	9.06
Zeo Energy	$73.24 million	0.84	-$3.19 million	($0.75)	-1.43

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Diversified Energy and Zeo Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	5	0	2.67
Zeo Energy	1	0	0	0	1.00

Diversified Energy presently has a consensus price target of $21.00, indicating a potential upside of 57.60%. Given Diversified Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Diversified Energy is more favorable than Zeo Energy.

Summary

Diversified Energy beats Zeo Energy on 10 of the 12 factors compared between the two stocks.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

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.