QuantumScape (NYSE:QS) versus Holley (NYSE:HLLY) Head-To-Head Analysis

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

Profitability

This table compares QuantumScape and Holley’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%
Holley	3.89%	5.46%	2.09%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$477.86 million	($0.71)	-11.80
Holley	$613.51 million	0.48	$19.17 million	$0.19	12.87

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

Analyst Ratings

This is a breakdown of current ratings and target prices for QuantumScape and Holley, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	1	6	0	0	1.86
Holley	1	1	4	0	2.50

QuantumScape currently has a consensus price target of $11.13, suggesting a potential upside of 32.86%. Holley has a consensus price target of $4.90, suggesting a potential upside of 100.41%. Given Holley’s stronger consensus rating and higher possible upside, analysts clearly believe Holley is more favorable than QuantumScape.

Insider and Institutional Ownership

29.9% of QuantumScape shares are owned by institutional investors. Comparatively, 39.7% of Holley shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by company insiders. Comparatively, 4.9% of Holley shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

QuantumScape has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500. Comparatively, Holley has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

Holley beats QuantumScape on 11 of the 13 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 Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.