QuantumScape (NYSE:QS) versus Solid Power (NASDAQ:SLDP) Head to Head Analysis

QuantumScape (NYSE:QS) and Solid Power (NASDAQ:SLDP) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Earnings and Valuation

This table compares QuantumScape and Solid Power’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$411.91 million	($1.02)	-6.76
Solid Power	$11.79 million	30.87	-$9.56 million	($0.25)	-8.16

Solid Power has higher revenue and earnings than QuantumScape. Solid Power is trading at a lower price-to-earnings ratio than QuantumScape, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

QuantumScape has a beta of 5.28, meaning that its stock price is 428% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

27.2% of QuantumScape shares are owned by institutional investors. Comparatively, 25.6% of Solid Power shares are owned by institutional investors. 10.2% of QuantumScape shares are owned by insiders. Comparatively, 6.8% of Solid Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares QuantumScape and Solid Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-34.78%	-31.01%
Solid Power	-281.63%	-8.13%	-7.62%

Analyst Ratings

This is a summary of current ratings and recommmendations for QuantumScape and Solid Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	3	2	1	0	1.67
Solid Power	1	5	2	0	2.13

QuantumScape presently has a consensus target price of $6.71, suggesting a potential downside of 2.62%. Solid Power has a consensus target price of $3.75, suggesting a potential upside of 80.29%. Given Solid Power’s stronger consensus rating and higher probable upside, analysts plainly believe Solid Power is more favorable than QuantumScape.

Summary

Solid Power beats QuantumScape on 8 of the 12 factors compared between the two stocks.

About QuantumScape

QuantumScape Corporation, a development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. QuantumScape Corporation was founded in 2010 and is headquartered in San Jose, California.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sell its sulfide-based solid electrolyte and to license its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.