Reviewing QuantumScape (NYSE:QS) and Aisin Seiki (OTCMKTS:ASEKY)

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

Earnings & Valuation

This table compares QuantumScape and Aisin Seiki”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	($0.71)	-11.55
Aisin Seiki	$34.00 billion	0.33	$1.14 billion	$1.53	9.80

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

Volatility and Risk

QuantumScape has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for QuantumScape and Aisin Seiki, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	1	6	0	0	1.86
Aisin Seiki	0	1	0	1	3.00

QuantumScape presently has a consensus target price of $11.13, indicating a potential upside of 35.77%. Given QuantumScape’s higher possible upside, equities analysts clearly believe QuantumScape is more favorable than Aisin Seiki.

Institutional and Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares QuantumScape and Aisin Seiki’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%
Aisin Seiki	3.34%	7.29%	3.93%

Summary

Aisin Seiki beats QuantumScape on 9 of the 13 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 Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.