QuantumScape (NYSE:QS – Get Rating) and Sunworks (NASDAQ:SUNW – Get Rating) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Institutional and Insider Ownership
26.1% of QuantumScape shares are owned by institutional investors. Comparatively, 16.2% of Sunworks shares are owned by institutional investors. 13.7% of QuantumScape shares are owned by insiders. Comparatively, 0.7% of Sunworks shares are owned 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.
Volatility and Risk
QuantumScape has a beta of 5.14, suggesting that its share price is 414% more volatile than the S&P 500. Comparatively, Sunworks has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QuantumScape | 2 | 1 | 0 | 0 | 1.33 |
| Sunworks | 0 | 0 | 1 | 0 | 3.00 |
QuantumScape currently has a consensus target price of $6.25, indicating a potential downside of 8.29%. Sunworks has a consensus target price of $4.50, indicating a potential upside of 220.28%. Given Sunworks’ stronger consensus rating and higher probable upside, analysts clearly believe Sunworks is more favorable than QuantumScape.
Earnings & Valuation
This table compares QuantumScape and Sunworks’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QuantumScape | N/A | N/A | -$411.91 million | ($0.98) | -6.95 |
| Sunworks | $161.93 million | 0.32 | -$28.21 million | ($0.77) | -1.82 |
Sunworks has higher revenue and earnings than QuantumScape. QuantumScape is trading at a lower price-to-earnings ratio than Sunworks, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares QuantumScape and Sunworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QuantumScape | N/A | -31.38% | -28.16% |
| Sunworks | -15.65% | -40.44% | -23.01% |
Summary
Sunworks beats QuantumScape on 8 of the 13 factors compared between the two stocks.
About QuantumScape
QuantumScape Corporation, a 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 Sunworks
Sunworks, Inc. engages in the provision of photovoltaic and battery based power and storage systems for the residential and commercial markets. It operates through the Solcius and Sunworks business segments. The Solcius segment focuses on residential projects. The Sunworks segment deals with commercial projects including commercial, agricultural, industrial, and public works projects. The company was founded by Roland F. Bryan, Mark P. Harris, and Christopher T. Kleveland in 1983 and is headquartered in Provo, UT.
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