Comparing QuantumScape (NYSE:QS) and WeRide (NASDAQ:WRD)

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

Valuation & Earnings

This table compares QuantumScape and WeRide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantumScape	N/A	N/A	-$477.86 million	($0.76)	-9.21
WeRide	$49.47 million	43.28	-$350.09 million	($0.84)	-7.87

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

Institutional & Insider Ownership

29.9% of QuantumScape shares are owned by institutional investors. 5.5% of QuantumScape shares are owned by company insiders. Comparatively, 2.7% of WeRide shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares QuantumScape and WeRide’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%
WeRide	-329.54%	-24.31%	-22.06%

Risk and Volatility

QuantumScape has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, WeRide has a beta of 4.36, suggesting that its share price is 336% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantumScape	3	6	0	0	1.67
WeRide	1	0	4	0	2.60

QuantumScape currently has a consensus target price of $8.98, suggesting a potential upside of 28.21%. WeRide has a consensus target price of $13.13, suggesting a potential upside of 98.56%. Given WeRide’s stronger consensus rating and higher probable upside, analysts clearly believe WeRide is more favorable than QuantumScape.

Summary

WeRide beats QuantumScape on 9 of the 13 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 WeRide

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.