Head-To-Head Comparison: QuantumScape (NYSE:QS) vs. Autoliv (NYSE:ALV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autoliv	6.45%	29.03%	8.75%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Autoliv and QuantumScape, as provided by MarketBeat.

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

Autoliv presently has a consensus price target of $135.00, suggesting a potential upside of 9.94%. QuantumScape has a consensus price target of $11.13, suggesting a potential upside of 35.77%. Given QuantumScape’s higher probable upside, analysts plainly believe QuantumScape is more favorable than Autoliv.

Earnings and Valuation

This table compares Autoliv and QuantumScape”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoliv	$10.82 billion	0.85	$735.00 million	$9.30	13.20
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-11.55

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.

Insider and Institutional Ownership

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

Volatility and Risk

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

Summary

Autoliv beats QuantumScape on 10 of the 13 factors compared between the two stocks.

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.

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.