Head-To-Head Comparison: QuantumScape (NYSE:QS) versus REE Automotive (NASDAQ:REE)

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

Analyst Recommendations

This is a breakdown of current recommendations for REE Automotive and QuantumScape, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REE Automotive	0	2	1	0	2.33
QuantumScape	4	7	0	0	1.64

REE Automotive presently has a consensus price target of $8.17, suggesting a potential upside of 953.76%. QuantumScape has a consensus price target of $9.17, suggesting a potential downside of 22.43%. Given REE Automotive’s stronger consensus rating and higher probable upside, research analysts clearly believe REE Automotive is more favorable than QuantumScape.

Insider and Institutional Ownership

12.7% of REE Automotive shares are held by institutional investors. Comparatively, 29.9% of QuantumScape shares are held by institutional investors. 6.0% of REE Automotive shares are held by company insiders. Comparatively, 5.5% of QuantumScape shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares REE Automotive and QuantumScape”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REE Automotive	$180,000.00	95.84	-$111.75 million	($7.19)	-0.11
QuantumScape	N/A	N/A	-$477.86 million	($0.81)	-14.59

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

Volatility & Risk

REE Automotive has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REE Automotive	N/A	N/A	N/A
QuantumScape	N/A	-39.90%	-35.31%

Summary

REE Automotive beats QuantumScape on 9 of the 12 factors compared between the two stocks.

About REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.

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.