Solid Power (NASDAQ:SLDP) and Allison Transmission (NYSE:ALSN) Financial Comparison

Solid Power (NASDAQ:SLDP) and Allison Transmission (NYSE:ALSN) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Solid Power and Allison Transmission, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	0	0	1	0	3.00
Allison Transmission	3	4	2	0	1.89

Solid Power currently has a consensus price target of $4.00, indicating a potential upside of 5.26%. Allison Transmission has a consensus price target of $98.38, indicating a potential upside of 11.33%. Given Allison Transmission’s higher possible upside, analysts clearly believe Allison Transmission is more favorable than Solid Power.

Profitability

This table compares Solid Power and Allison Transmission’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-412.62%	-23.13%	-21.54%
Allison Transmission	23.81%	45.56%	14.19%

Volatility & Risk

Solid Power has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Solid Power and Allison Transmission”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$20.14 million	34.20	-$96.52 million	($0.52)	-7.31
Allison Transmission	$3.23 billion	2.29	$731.00 million	$8.80	10.04

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

Insider and Institutional Ownership

33.7% of Solid Power shares are owned by institutional investors. Comparatively, 96.9% of Allison Transmission shares are owned by institutional investors. 7.2% of Solid Power shares are owned by company insiders. Comparatively, 1.2% of Allison Transmission shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Allison Transmission beats Solid Power on 10 of the 14 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About Allison Transmission

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.