QuantumScape (NYSE:QS – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Institutional & Insider Ownership
29.9% of QuantumScape shares are owned by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by company insiders. Comparatively, 0.8% of Westport Fuel Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares QuantumScape and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QuantumScape | N/A | -39.90% | -35.31% |
| Westport Fuel Systems | -25.63% | -24.16% | -11.64% |
Volatility & Risk
Analyst Ratings
This is a summary of recent ratings and target prices for QuantumScape and Westport Fuel Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QuantumScape | 3 | 6 | 0 | 0 | 1.67 |
| Westport Fuel Systems | 1 | 2 | 1 | 0 | 2.00 |
QuantumScape presently has a consensus price target of $8.98, indicating a potential upside of 30.45%. Westport Fuel Systems has a consensus price target of $6.60, indicating a potential upside of 256.76%. Given Westport Fuel Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Westport Fuel Systems is more favorable than QuantumScape.
Valuation and Earnings
This table compares QuantumScape and Westport Fuel Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QuantumScape | N/A | N/A | -$477.86 million | ($0.76) | -9.05 |
| Westport Fuel Systems | $290.32 million | 0.11 | -$21.84 million | ($3.50) | -0.53 |
Westport Fuel Systems has higher revenue and earnings than QuantumScape. QuantumScape is trading at a lower price-to-earnings ratio than Westport Fuel Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Westport Fuel Systems beats QuantumScape on 8 of the 13 factors compared between the two stocks.
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.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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