Reviewing AB Volvo (OTCMKTS:VLVLY) and QuantumScape (NYSE:QS)

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

Earnings and Valuation

This table compares AB Volvo and QuantumScape”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.44	$3.52 billion	$2.03	17.12
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-9.34

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

Analyst Ratings

This is a breakdown of current recommendations for AB Volvo and QuantumScape, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	3	2.50
QuantumScape	1	6	0	0	1.86

QuantumScape has a consensus target price of $11.13, indicating a potential upside of 67.92%. Given QuantumScape’s higher probable upside, analysts plainly believe QuantumScape is more favorable than AB Volvo.

Insider and Institutional Ownership

0.0% of AB Volvo 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 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.

Volatility & Risk

AB Volvo has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.61, suggesting that its share price is 161% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.32%	22.17%	5.92%
QuantumScape	N/A	-39.90%	-35.31%

Summary

AB Volvo beats QuantumScape on 9 of the 13 factors compared between the two stocks.

About AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, 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.