Solid Power (NASDAQ:SLDP) vs. Gentherm (NASDAQ:THRM) Financial Contrast

Gentherm (NASDAQ:THRM) and Solid Power (NASDAQ:SLDP) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Gentherm and Solid Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	1	2	1	1	2.40
Solid Power	1	0	1	0	2.00

Gentherm currently has a consensus price target of $43.00, suggesting a potential upside of 32.68%. Solid Power has a consensus price target of $7.00, suggesting a potential upside of 79.95%. Given Solid Power’s higher probable upside, analysts plainly believe Solid Power is more favorable than Gentherm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentherm	2.08%	9.55%	4.80%
Solid Power	-429.55%	-24.88%	-23.07%

Insider and Institutional Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 1.4% of Gentherm shares are held by company insiders. Comparatively, 4.9% of Solid Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Gentherm and Solid Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.46 billion	0.68	$64.95 million	$1.00	32.41
Solid Power	$20.14 million	36.90	-$96.52 million	($0.53)	-7.34

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

Volatility and Risk

Gentherm has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Summary

Gentherm beats Solid Power on 10 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 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.