Analyzing Aeva Technologies (NASDAQ:AEVA) and QuantumScape (NYSE:QS)

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

Risk & Volatility

Aeva Technologies has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500.

Valuation & Earnings

This table compares Aeva Technologies and QuantumScape”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeva Technologies	$9.06 million	134.28	-$152.26 million	($5.32)	-3.81
QuantumScape	N/A	N/A	-$477.86 million	($0.81)	-13.30

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

Insider and Institutional Ownership

62.9% of Aeva Technologies shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 27.2% of Aeva Technologies shares are owned by insiders. Comparatively, 5.5% of QuantumScape shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aeva Technologies	-1,031.15%	-603.21%	-112.53%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Aeva Technologies and QuantumScape, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeva Technologies	1	1	3	0	2.40
QuantumScape	4	7	0	0	1.64

Aeva Technologies currently has a consensus price target of $26.50, suggesting a potential upside of 30.86%. QuantumScape has a consensus price target of $9.17, suggesting a potential downside of 14.89%. Given Aeva Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Aeva Technologies is more favorable than QuantumScape.

Summary

Aeva Technologies beats QuantumScape on 8 of the 13 factors compared between the two stocks.

About Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.

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.