Comparing Solid Power (NASDAQ:SLDP) & Adient (NYSE:ADNT)

Adient (NYSE:ADNT) and Solid Power (NASDAQ:SLDP) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Risk and Volatility

Adient has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Valuation and Earnings

This table compares Adient and Solid Power”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adient	$14.54 billion	0.11	-$281.00 million	$0.71	28.04
Solid Power	$21.75 million	26.79	-$93.41 million	($0.48)	-5.40

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

Insider & Institutional Ownership

92.4% of Adient shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 0.9% of Adient shares are held by insiders. Comparatively, 5.7% of Solid Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Adient and Solid Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adient	1	6	5	0	2.33
Solid Power	1	1	3	0	2.40

Adient currently has a consensus target price of $28.44, suggesting a potential upside of 42.88%. Solid Power has a consensus target price of $6.92, suggesting a potential upside of 167.05%. Given Solid Power’s stronger consensus rating and higher possible upside, analysts plainly believe Solid Power is more favorable than Adient.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adient	0.39%	7.28%	1.67%
Solid Power	-485.47%	-21.57%	-20.02%

Summary

Adient beats Solid Power on 8 of the 14 factors compared between the two stocks.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

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 sells its sulfide-based solid electrolyte; and licenses 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.