QuantumScape (NYSE:QS) versus Gentherm (NASDAQ:THRM) Head-To-Head Contrast

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

Institutional & Insider Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 29.9% of QuantumScape shares are held by institutional investors. 1.4% of Gentherm shares are held by insiders. Comparatively, 5.5% of QuantumScape shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentherm	2.18%	9.90%	4.95%
QuantumScape	N/A	-42.10%	-36.91%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.46 billion	0.73	$64.95 million	$1.02	34.13
QuantumScape	N/A	N/A	-$477.86 million	($0.86)	-11.54

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Gentherm and QuantumScape, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	0	2	2	1	2.80
QuantumScape	2	6	0	0	1.75

Gentherm currently has a consensus target price of $46.00, indicating a potential upside of 32.15%. QuantumScape has a consensus target price of $5.88, indicating a potential downside of 40.72%. Given Gentherm’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gentherm is more favorable than QuantumScape.

Volatility & Risk

Gentherm has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 4.42, meaning that its stock price is 342% more volatile than the S&P 500.

Summary

Gentherm beats QuantumScape on 12 of the 14 factors compared between the two stocks.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

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.