QuantumScape (NYSE:QS) & WeRide (NASDAQ:WRD) Financial Analysis

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

Risk and Volatility

WeRide has a beta of 4.36, indicating that its share price is 336% 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.

Institutional & Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. 2.7% of WeRide 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for WeRide and QuantumScape, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	0	4	0	2.60
QuantumScape	3	6	0	0	1.67

WeRide currently has a consensus price target of $13.13, suggesting a potential upside of 106.04%. QuantumScape has a consensus price target of $8.98, suggesting a potential upside of 34.16%. Given WeRide’s stronger consensus rating and higher probable upside, research analysts plainly believe WeRide is more favorable than QuantumScape.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WeRide	-329.54%	-24.31%	-22.06%
QuantumScape	N/A	-39.90%	-35.31%

Valuation and Earnings

This table compares WeRide and QuantumScape”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$511.42 million	4.03	-$350.09 million	($0.84)	-7.58
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-8.80

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

Summary

WeRide beats QuantumScape on 9 of the 13 factors compared between the two stocks.

About WeRide

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.

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.