Comparing Holley (NYSE:HLLY) & QuantumScape (NYSE:QS)

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

Institutional & Insider Ownership

39.7% of Holley shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 4.9% of Holley shares are owned by company insiders. Comparatively, 5.5% of QuantumScape shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Holley and QuantumScape”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holley	$613.51 million	0.49	$19.17 million	$0.19	12.98
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-10.28

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

Volatility and Risk

Holley has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Holley	3.89%	5.46%	2.09%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Ratings

This is a breakdown of current ratings and target prices for Holley and QuantumScape, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holley	0	2	4	0	2.67
QuantumScape	1	6	0	0	1.86

Holley presently has a consensus price target of $4.90, suggesting a potential upside of 98.70%. QuantumScape has a consensus price target of $11.13, suggesting a potential upside of 52.51%. Given Holley’s stronger consensus rating and higher possible upside, equities analysts plainly believe Holley is more favorable than QuantumScape.

Summary

Holley beats QuantumScape on 11 of the 13 factors compared between the two stocks.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.

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.