Zeons (OTCMKTS:ZEON) versus FuelCell Energy (NASDAQ:FCEL) Financial Analysis

Zeons (OTCMKTS:ZEON) and FuelCell Energy (NASDAQ:FCEL) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Zeons has a beta of -1.79, suggesting that its share price is 279% less volatile than the S&P 500. Comparatively, FuelCell Energy has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Zeons and FuelCell Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeons	N/A	N/A	N/A
FuelCell Energy	-118.80%	-18.85%	-13.26%

Institutional and Insider Ownership

42.8% of FuelCell Energy shares are held by institutional investors. 0.4% of FuelCell Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Zeons and FuelCell Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeons	0	0	0	0	0.00
FuelCell Energy	1	5	0	1	2.14

FuelCell Energy has a consensus price target of $9.06, suggesting a potential upside of 11.06%. Given FuelCell Energy’s stronger consensus rating and higher possible upside, analysts plainly believe FuelCell Energy is more favorable than Zeons.

Earnings and Valuation

This table compares Zeons and FuelCell Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeons	N/A	N/A	N/A	N/A	N/A
FuelCell Energy	$158.16 million	2.46	-$187.90 million	($7.84)	-1.04

Zeons has higher earnings, but lower revenue than FuelCell Energy.

Summary

FuelCell Energy beats Zeons on 7 of the 10 factors compared between the two stocks.

About Zeons

Zeons Corporation provides research and development of energy solutions. It produces bio fuels, including fuels for diesel, gasoline, and natural gas engines from agricultural feed stocks, such as soybeans and corn. The company also offers a family of technologies that focus on the development of energy from various sources, and the conversion of waste into energy or other usable products. The company was formerly known as U.S. Sustainable Energy Corporation and changed its name to Zeons Corporation in February 2010. The company is based in Natchez, Mississippi.

About FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.