Autoliv (NYSE:ALV) vs. QuantumScape (NYSE:QS) Financial Analysis

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

Valuation and Earnings

This table compares QuantumScape and Autoliv”s gross revenue, earnings per share (EPS) 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)	-12.65
Autoliv	$10.99 billion	0.87	$735.00 million	$9.30	13.68

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	1	6	0	0	1.86
Autoliv	0	5	8	0	2.62

QuantumScape currently has a consensus target price of $11.13, suggesting a potential upside of 23.98%. Autoliv has a consensus target price of $135.00, suggesting a potential upside of 6.13%. Given QuantumScape’s higher possible upside, equities analysts clearly believe QuantumScape is more favorable than Autoliv.

Insider and Institutional Ownership

29.9% of QuantumScape shares are held by institutional investors. Comparatively, 69.6% of Autoliv shares are held by institutional investors. 5.5% of QuantumScape shares are held by insiders. Comparatively, 0.3% of Autoliv shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares QuantumScape and Autoliv’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%
Autoliv	6.45%	29.03%	8.75%

Volatility & Risk

QuantumScape has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

Autoliv beats QuantumScape on 10 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 Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.