Critical Review: Eos Energy Enterprises (NASDAQ:EOSE) and Tigo Energy (NASDAQ:TYGO)

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

Valuation and Earnings

This table compares Eos Energy Enterprises and Tigo Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eos Energy Enterprises	$214.25 million	5.46	-$969.65 million	($6.83)	-0.47
Tigo Energy	$103.54 million	0.64	-$1.88 million	$0.14	6.19

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eos Energy Enterprises	-246.76%	N/A	-72.43%
Tigo Energy	8.97%	-1.74%	-0.64%

Volatility & Risk

Eos Energy Enterprises has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Eos Energy Enterprises and Tigo Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eos Energy Enterprises	1	6	2	1	2.30
Tigo Energy	0	2	1	0	2.33

Eos Energy Enterprises currently has a consensus price target of $8.19, indicating a potential upside of 155.06%. Tigo Energy has a consensus price target of $3.73, indicating a potential upside of 330.55%. Given Tigo Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Tigo Energy is more favorable than Eos Energy Enterprises.

Insider & Institutional Ownership

54.9% of Eos Energy Enterprises shares are held by institutional investors. Comparatively, 15.7% of Tigo Energy shares are held by institutional investors. 1.7% of Eos Energy Enterprises shares are held by company insiders. Comparatively, 26.6% of Tigo Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Tigo Energy beats Eos Energy Enterprises on 8 of the 15 factors compared between the two stocks.

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.

About Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.