Solid Power (NASDAQ:SLDP) versus Adient (NYSE:ADNT) Critical Analysis

Solid Power (NASDAQ:SLDPGet Free Report) and Adient (NYSE:ADNTGet Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility & Risk

Solid Power has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, Adient has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Solid Power and Adient, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solid Power 1 1 3 0 2.40
Adient 1 6 5 0 2.33

Solid Power currently has a consensus price target of $6.92, indicating a potential upside of 147.02%. Adient has a consensus price target of $28.00, indicating a potential upside of 35.96%. Given Solid Power’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Solid Power is more favorable than Adient.

Insider & Institutional Ownership

33.7% of Solid Power shares are owned by institutional investors. Comparatively, 92.4% of Adient shares are owned by institutional investors. 5.7% of Solid Power shares are owned by insiders. Comparatively, 0.9% of Adient shares are owned 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.

Valuation & Earnings

This table compares Solid Power and Adient”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solid Power $21.75 million 28.96 -$93.41 million ($0.48) -5.83
Adient $14.94 billion 0.11 -$281.00 million $0.71 29.01

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

Profitability

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

Net Margins Return on Equity Return on Assets
Solid Power -485.47% -21.57% -20.02%
Adient 0.39% 7.28% 1.67%

Summary

Adient beats Solid Power on 8 of the 14 factors compared between the two stocks.

About Solid Power

(Get Free Report)

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 Adient

(Get Free Report)

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

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