Head-To-Head Comparison: Solid Power (NASDAQ:SLDP) versus Gentherm (NASDAQ:THRM)

Solid Power (NASDAQ:SLDP) and Gentherm (NASDAQ:THRM) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Volatility & Risk

Solid Power has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Valuation & Earnings

This table compares Solid Power and Gentherm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$20.14 million	38.13	-$96.52 million	($0.53)	-7.58
Gentherm	$1.46 billion	0.67	$64.95 million	$1.00	31.93

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

Analyst Ratings

This is a summary of current recommendations for Solid Power and Gentherm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	0	1	0	2.00
Gentherm	0	3	1	1	2.60

Solid Power presently has a consensus price target of $7.00, suggesting a potential upside of 74.13%. Gentherm has a consensus price target of $43.00, suggesting a potential upside of 34.67%. Given Solid Power’s higher possible upside, analysts clearly believe Solid Power is more favorable than Gentherm.

Insider & Institutional Ownership

33.7% of Solid Power shares are owned by institutional investors. Comparatively, 97.1% of Gentherm shares are owned by institutional investors. 7.2% of Solid Power shares are owned by company insiders. Comparatively, 1.4% of Gentherm shares are owned by company 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.

Profitability

This table compares Solid Power and Gentherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-429.55%	-24.88%	-23.07%
Gentherm	2.08%	9.55%	4.80%

Summary

Gentherm beats Solid Power on 9 of the 13 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.