Denso (OTCMKTS:DNZOY) and QuantumScape (NYSE:QS) Head to Head Analysis

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

Valuation & Earnings

This table compares QuantumScape and Denso”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)	-8.55
Denso	$47.03 billion	0.74	$2.77 billion	$0.92	12.97

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

Insider and Institutional Ownership

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	3	6	0	0	1.67
Denso	0	4	0	0	2.00

QuantumScape presently has a consensus target price of $8.98, indicating a potential upside of 38.08%. Given QuantumScape’s higher possible upside, research analysts clearly believe QuantumScape is more favorable than Denso.

Risk & Volatility

QuantumScape has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Denso has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-39.90%	-35.31%
Denso	5.12%	7.23%	4.57%

Summary

Denso beats QuantumScape on 8 of the 12 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 Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.