Comparing Iochpe-Maxion (OTCMKTS:IOCJY) & QuantumScape (NYSE:QS)

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

Risk and Volatility

Iochpe-Maxion has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.76, meaning that its share price is 176% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Iochpe-Maxion and QuantumScape, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iochpe-Maxion	0	0	0	0	0.00
QuantumScape	4	7	0	0	1.64

QuantumScape has a consensus price target of $9.17, suggesting a potential downside of 17.82%. Given QuantumScape’s stronger consensus rating and higher probable upside, analysts clearly believe QuantumScape is more favorable than Iochpe-Maxion.

Valuation & Earnings

This table compares Iochpe-Maxion and QuantumScape”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iochpe-Maxion	$2.84 billion	0.10	$49.08 million	$0.07	8.61
QuantumScape	N/A	N/A	-$477.86 million	($0.81)	-13.77

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

Institutional & Insider Ownership

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

Profitability

This table compares Iochpe-Maxion and QuantumScape’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iochpe-Maxion	1.28%	4.09%	1.30%
QuantumScape	N/A	-39.90%	-35.31%

Summary

Iochpe-Maxion beats QuantumScape on 7 of the 12 factors compared between the two stocks.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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.