Critical Analysis: QuantumScape (NYSE:QS) and ChargePoint (NYSE:CHPT)

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

Institutional and Insider Ownership

37.8% of ChargePoint shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 3.5% of ChargePoint shares are owned by company insiders. Comparatively, 5.5% of QuantumScape shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

ChargePoint has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-59.54%	-209.46%	-21.77%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Ratings

This is a summary of current recommendations and price targets for ChargePoint and QuantumScape, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	3	8	1	0	1.83
QuantumScape	4	7	0	0	1.64

ChargePoint currently has a consensus price target of $12.65, indicating a potential upside of 79.31%. QuantumScape has a consensus price target of $9.17, indicating a potential downside of 14.49%. Given ChargePoint’s stronger consensus rating and higher probable upside, analysts plainly believe ChargePoint is more favorable than QuantumScape.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$417.08 million	0.40	-$277.07 million	($10.28)	-0.69
QuantumScape	N/A	N/A	-$477.86 million	($0.81)	-13.23

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

Summary

ChargePoint beats QuantumScape on 8 of the 13 factors compared between the two stocks.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

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.