Analyzing Autoliv (NYSE:ALV) and QuantumScape (NYSE:QS)

Autoliv (NYSE:ALV) and QuantumScape (NYSE:QS) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autoliv	6.45%	29.03%	8.75%
QuantumScape	N/A	-39.90%	-35.31%

Valuation & Earnings

This table compares Autoliv and QuantumScape”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoliv	$10.82 billion	0.88	$735.00 million	$9.30	13.68
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-12.65

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

Analyst Ratings

This is a breakdown of recent ratings for Autoliv and QuantumScape, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoliv	0	5	8	0	2.62
QuantumScape	1	6	0	0	1.86

Autoliv presently has a consensus price target of $135.00, suggesting a potential upside of 6.13%. QuantumScape has a consensus price target of $11.13, suggesting a potential upside of 23.98%. Given QuantumScape’s higher probable upside, analysts plainly believe QuantumScape is more favorable than Autoliv.

Risk & Volatility

Autoliv has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.

Institutional & Insider Ownership

69.6% of Autoliv shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 0.3% of Autoliv shares are owned by company insiders. Comparatively, 5.5% of QuantumScape shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Autoliv beats QuantumScape on 10 of the 13 factors compared between the two stocks.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, 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.