Comparing Solid Power (NASDAQ:SLDP) and BRP (NASDAQ:DOOO)

BRP (NASDAQ:DOOO) and Solid Power (NASDAQ:SLDP) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Earnings & Valuation

This table compares BRP and Solid Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRP	$8.03 billion	0.71	-$154.60 million	$0.37	212.05
Solid Power	$20.14 million	38.32	-$96.52 million	($0.53)	-7.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRP	0.45%	67.30%	4.72%
Solid Power	-429.55%	-24.88%	-23.07%

Insider & Institutional Ownership

33.7% of Solid Power shares are owned by institutional investors. 4.9% of Solid Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for BRP and Solid Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	0	5	9	4	2.94
Solid Power	1	0	1	0	2.00

BRP presently has a consensus target price of $84.40, suggesting a potential upside of 7.57%. Solid Power has a consensus target price of $7.00, suggesting a potential upside of 73.27%. Given Solid Power’s higher possible upside, analysts clearly believe Solid Power is more favorable than BRP.

Risk & Volatility

BRP has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Summary

BRP beats Solid Power on 9 of the 15 factors compared between the two stocks.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

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.