Head to Head Review: XPEL (NASDAQ:XPEL) versus QuantumScape (NYSE:QS)

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

Risk and Volatility

QuantumScape has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for QuantumScape and XPEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	3	6	0	0	1.67
XPEL	0	2	0	0	2.00

QuantumScape presently has a consensus target price of $8.98, indicating a potential upside of 25.52%. Given QuantumScape’s higher possible upside, equities research analysts plainly believe QuantumScape is more favorable than XPEL.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-39.90%	-35.31%
XPEL	10.12%	19.20%	14.79%

Earnings & Valuation

This table compares QuantumScape and XPEL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-9.41
XPEL	$420.40 million	3.30	$45.49 million	$1.69	29.67

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

Institutional and Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by company insiders. Comparatively, 9.5% of XPEL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

XPEL beats QuantumScape on 10 of the 12 factors compared between the two stocks.

About QuantumScape

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

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.