Analyzing Stem (NYSE:STEM) & QuantumScape (NYSE:QS)

Stem (NYSE:STEM) and QuantumScape (NYSE:QS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Stem N/A -229.86% -27.74%
QuantumScape N/A -17.38% -11.78%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Stem and QuantumScape, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stem 0 0 4 0 3.00
QuantumScape 1 3 2 0 2.17

Stem presently has a consensus target price of $38.00, suggesting a potential upside of 50.20%. QuantumScape has a consensus target price of $46.83, suggesting a potential upside of 73.46%. Given QuantumScape’s higher possible upside, analysts clearly believe QuantumScape is more favorable than Stem.

Valuation & Earnings

This table compares Stem and QuantumScape’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stem N/A N/A -$112.63 million N/A N/A
QuantumScape N/A N/A -$1.68 billion ($0.39) -69.23

Institutional and Insider Ownership

40.1% of Stem shares are owned by institutional investors. Comparatively, 15.7% of QuantumScape shares are owned by institutional investors. 1.3% of Stem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Stem beats QuantumScape on 5 of the 8 factors compared between the two stocks.

Stem Company Profile

Stem, Inc. operates as an energy technology company in the United States. The company offers energy storage solutions with Athena, an artificial intelligence powered analytics platform to optimize energy use by automatically switching between battery power, onsite generation, and grid power. It serves commercial and industrial enterprises, independent power producers, renewable project developers, utilities, and grid operators. The company is headquartered in Millbrae, California.

QuantumScape Company Profile

QuantumScape Corporation, a development stage company, engages in 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.

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