Financial Analysis: ChargePoint (NYSE:CHPT) and QuantumScape (NYSE:QS)

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

Institutional & Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. Comparatively, 37.8% of ChargePoint shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by insiders. Comparatively, 3.5% of ChargePoint shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$477.86 million	($0.81)	-13.10
ChargePoint	$417.08 million	0.39	-$277.07 million	($10.28)	-0.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-39.90%	-35.31%
ChargePoint	-59.54%	-209.46%	-21.77%

Analyst Ratings

This is a breakdown of current ratings for QuantumScape and ChargePoint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	4	7	0	0	1.64
ChargePoint	3	8	1	0	1.83

QuantumScape currently has a consensus price target of $9.17, indicating a potential downside of 13.60%. ChargePoint has a consensus price target of $12.65, indicating a potential upside of 82.96%. Given ChargePoint’s stronger consensus rating and higher probable upside, analysts clearly believe ChargePoint is more favorable than QuantumScape.

Risk & Volatility

QuantumScape has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Summary

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

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.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.