Critical Review: Dragonfly Energy (NASDAQ:DFLI) & QuantumScape (NYSE:QS)

Dragonfly Energy (NASDAQ:DFLI) and QuantumScape (NYSE:QS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

Dragonfly Energy has a beta of -0.76, indicating that its share price is 176% less volatile than the S&P 500. Comparatively, QuantumScape has a beta of 4.69, indicating that its share price is 369% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dragonfly Energy	-50.04%	-114.66%	-33.49%
QuantumScape	N/A	-35.49%	-31.37%

Institutional and Insider Ownership

8.2% of Dragonfly Energy shares are owned by institutional investors. Comparatively, 29.9% of QuantumScape shares are owned by institutional investors. 28.4% of Dragonfly Energy shares are owned by insiders. Comparatively, 10.2% of QuantumScape shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Dragonfly Energy and QuantumScape’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dragonfly Energy	$58.11 million	0.88	-$13.82 million	($0.54)	-1.57
QuantumScape	N/A	N/A	-$445.14 million	($0.96)	-5.30

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

Analyst Ratings

This is a summary of recent ratings and price targets for Dragonfly Energy and QuantumScape, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dragonfly Energy	0	0	6	0	3.00
QuantumScape	2	5	1	0	1.88

Dragonfly Energy currently has a consensus target price of $1.79, suggesting a potential upside of 111.71%. QuantumScape has a consensus target price of $6.67, suggesting a potential upside of 31.07%. Given Dragonfly Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Dragonfly Energy is more favorable than QuantumScape.

Summary

Dragonfly Energy beats QuantumScape on 8 of the 13 factors compared between the two stocks.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. engages in the manufacturing and sale of deep cycle lithium-ion batteries for recreational vehicles, marine vessels, solar and off-grid residence industries, and industrial and energy storage markets. The company provides lithium power systems comprising solar panels, chargers and inverters, system monitoring, alternator regulators, accessories, and others. It also offers battery management systems for monitoring and controlling of battery systems and to protect battery cells from damage in various scenarios. The company provides its products under the Dragonfly Energy, Battle Born, and Wakespeed brand names. Dragonfly Energy Holdings Corp. is headquartered in Reno, Nevada.

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.