Head-To-Head Contrast: REE Automotive (NASDAQ:REE) vs. QuantumScape (NYSE:QS)

QuantumScape (NYSE:QS) and REE Automotive (NASDAQ:REE) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Risk and Volatility

QuantumScape has a beta of 2.76, meaning that its stock price is 176% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500.

Profitability

This table compares QuantumScape and REE Automotive’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%
REE Automotive	N/A	N/A	N/A

Earnings and Valuation

This table compares QuantumScape and REE Automotive”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	($0.81)	-14.59
REE Automotive	$180,000.00	95.84	-$111.75 million	($7.19)	-0.11

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

Analyst Recommendations

This is a summary of current ratings and target prices for QuantumScape and REE Automotive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	4	7	0	0	1.64
REE Automotive	0	2	1	0	2.33

QuantumScape currently has a consensus target price of $9.17, suggesting a potential downside of 22.43%. REE Automotive has a consensus target price of $8.17, suggesting a potential upside of 953.76%. Given REE Automotive’s stronger consensus rating and higher probable upside, analysts plainly believe REE Automotive is more favorable than QuantumScape.

Institutional & Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. Comparatively, 12.7% of REE Automotive shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by company insiders. Comparatively, 6.0% of REE Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

REE Automotive beats QuantumScape on 9 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 REE Automotive

REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.