Critical Contrast: Aisin Seiki (OTCMKTS:ASEKY) versus QuantumScape (NYSE:QS)

Aisin Seiki (OTCMKTS:ASEKY) and QuantumScape (NYSE:QS) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aisin Seiki	3.34%	7.29%	3.93%
QuantumScape	N/A	-39.90%	-35.31%

Analyst Ratings

This is a summary of recent ratings for Aisin Seiki and QuantumScape, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aisin Seiki	0	1	0	1	3.00
QuantumScape	1	6	0	0	1.86

QuantumScape has a consensus price target of $11.13, suggesting a potential upside of 53.20%. Given QuantumScape’s higher possible upside, analysts clearly believe QuantumScape is more favorable than Aisin Seiki.

Volatility & Risk

Aisin Seiki has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, QuantumScape has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500.

Earnings & Valuation

This table compares Aisin Seiki and QuantumScape”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aisin Seiki	$34.00 billion	0.34	$1.14 billion	$1.53	10.07
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-10.24

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

Institutional & Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

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

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.

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.