Critical Survey: Gauzy (NASDAQ:GAUZ) and QuantumScape (NYSE:QS)

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

Analyst Recommendations

This is a summary of recent recommendations for QuantumScape and Gauzy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	1	7	0	0	1.88
Gauzy	0	0	4	0	3.00

QuantumScape currently has a consensus target price of $6.26, suggesting a potential upside of 25.20%. Gauzy has a consensus target price of $16.25, suggesting a potential upside of 81.56%. Given Gauzy’s stronger consensus rating and higher possible upside, analysts plainly believe Gauzy is more favorable than QuantumScape.

Institutional and Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. 12.0% of QuantumScape shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuantumScape	N/A	-39.00%	-33.83%
Gauzy	-66.25%	N/A	-34.21%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$445.14 million	($0.95)	-5.26
Gauzy	$77.98 million	2.19	-$79.27 million	N/A	N/A

Gauzy has higher revenue and earnings than QuantumScape.

Summary

Gauzy beats QuantumScape on 6 of the 10 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 Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.