Comparing QuantumScape (NYSE:QS) and XPEL (NASDAQ:XPEL)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$420.40 million	3.54	$45.49 million	$1.69	31.79
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-10.17

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

Insider and Institutional Ownership

75.1% of XPEL shares are held by institutional investors. Comparatively, 29.9% of QuantumScape shares are held by institutional investors. 9.5% of XPEL shares are held by company insiders. Comparatively, 5.5% of QuantumScape shares are held by company 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 XPEL and QuantumScape’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.12%	19.20%	14.79%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Ratings

This is a summary of current ratings and price targets for XPEL and QuantumScape, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	0	0	2.00
QuantumScape	3	5	0	0	1.63

QuantumScape has a consensus price target of $9.69, indicating a potential upside of 25.32%. Given QuantumScape’s higher probable upside, analysts clearly believe QuantumScape is more favorable than XPEL.

Volatility and Risk

XPEL has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.

Summary

XPEL beats QuantumScape on 10 of the 12 factors compared between the two stocks.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

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.