Critical Review: QuantumScape (NYSE:QS) & Nokian Renkaat Oyj (OTCMKTS:NKRKY)

Nokian Renkaat Oyj (OTCMKTS:NKRKY) and QuantumScape (NYSE:QS) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

0.2% of Nokian Renkaat Oyj shares are held by institutional investors. Comparatively, 29.9% of QuantumScape shares are held by institutional investors. 3.9% of QuantumScape shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Nokian Renkaat Oyj and QuantumScape’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokian Renkaat Oyj	N/A	N/A	N/A
QuantumScape	N/A	-39.90%	-35.31%

Analyst Ratings

This is a summary of current ratings and recommmendations for Nokian Renkaat Oyj and QuantumScape, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokian Renkaat Oyj	0	1	0	0	2.00
QuantumScape	1	5	0	0	1.83

QuantumScape has a consensus price target of $9.47, suggesting a potential upside of 68.75%. Given QuantumScape’s higher probable upside, analysts plainly believe QuantumScape is more favorable than Nokian Renkaat Oyj.

Earnings & Valuation

This table compares Nokian Renkaat Oyj and QuantumScape”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.45	20.94
QuantumScape	N/A	N/A	-$477.86 million	($0.67)	-8.37

QuantumScape is trading at a lower price-to-earnings ratio than Nokian Renkaat Oyj, indicating that it is currently the more affordable of the two stocks.

Summary

Nokian Renkaat Oyj beats QuantumScape on 5 of the 8 factors compared between the two stocks.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

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.