Head-To-Head Contrast: Eos Energy Enterprises (NASDAQ:EOSE) versus Energy Focus (NASDAQ:EFOI)

Energy Focus (NASDAQ:EFOI) and Eos Energy Enterprises (NASDAQ:EOSE) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Valuation & Earnings

This table compares Energy Focus and Eos Energy Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Focus	$6.50 million	2.66	-$1.03 million	($0.25)	-10.84
Eos Energy Enterprises	$214.25 million	2.86	-$969.65 million	($6.83)	-0.25

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

Volatility and Risk

Energy Focus has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500. Comparatively, Eos Energy Enterprises has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Energy Focus	-23.77%	-42.44%	-25.33%
Eos Energy Enterprises	-246.76%	N/A	-72.43%

Analyst Recommendations

This is a summary of current ratings and price targets for Energy Focus and Eos Energy Enterprises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Focus	1	0	0	0	1.00
Eos Energy Enterprises	1	6	2	1	2.30

Eos Energy Enterprises has a consensus target price of $7.69, indicating a potential upside of 357.59%. Given Eos Energy Enterprises’ stronger consensus rating and higher probable upside, analysts plainly believe Eos Energy Enterprises is more favorable than Energy Focus.

Insider and Institutional Ownership

3.7% of Energy Focus shares are owned by institutional investors. Comparatively, 54.9% of Eos Energy Enterprises shares are owned by institutional investors. 48.9% of Energy Focus shares are owned by company insiders. Comparatively, 1.7% of Eos Energy Enterprises shares are owned 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.

Summary

Eos Energy Enterprises beats Energy Focus on 10 of the 15 factors compared between the two stocks.

About Energy Focus

Energy Focus, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells energy-efficient lighting systems, and controls and ultraviolet-C light disinfection products in the United States and internationally. It offers military maritime market light-emitting diode (LED) lighting products, such as Military-grade Intellitube retrofit TLED and the Invisitube ultra-low EMI TLED; and Military-grade fixtures, including LED globe lights, berth lights; high-bay fixtures and LED retrofit kits to serve the United States navy and allied foreign navies. The company also provides RedCap emergency battery backup TLEDs; EnFocus lighting platform, including dimming and color tuning; and LED retrofit solutions for linear fluorescent lamps, downlights, and retrofit kits for low-bay, high-bay and office applications; LED dock lights. It sells its products to military maritime, industrial, and commercial markets through direct sales employees, independent sales representatives, lighting agents, and distributors, as well as via e-commerce. The company was formerly known as Fiberstars, Inc. and changed its name to Energy Focus, Inc. in May 2007. Energy Focus, Inc. was founded in 1985 and is headquartered in Solon, Ohio.

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.