Reviewing QuantumScape (NYSE:QS) and Wabash National (NYSE:WNC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wabash National	13.71%	-22.79%	-6.77%
QuantumScape	N/A	-39.90%	-35.31%

Earnings & Valuation

This table compares Wabash National and QuantumScape”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabash National	$1.54 billion	0.23	$211.45 million	$4.87	1.78
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-9.28

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

Risk and Volatility

Wabash National has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wabash National and QuantumScape, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabash National	1	2	0	0	1.67
QuantumScape	3	6	0	0	1.67

Wabash National presently has a consensus price target of $10.00, suggesting a potential upside of 15.22%. QuantumScape has a consensus price target of $8.98, suggesting a potential upside of 27.30%. Given QuantumScape’s higher probable upside, analysts clearly believe QuantumScape is more favorable than Wabash National.

Institutional & Insider Ownership

97.1% of Wabash National shares are held by institutional investors. Comparatively, 29.9% of QuantumScape shares are held by institutional investors. 1.8% of Wabash National shares are held by insiders. Comparatively, 5.5% of QuantumScape shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Wabash National beats QuantumScape on 8 of the 11 factors compared between the two stocks.

About Wabash National

Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

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.