Contrasting Adient (NYSE:ADNT) and Solid Power (NASDAQ:SLDP)

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

Volatility and Risk

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

Analyst Ratings

This is a summary of recent ratings and target prices for Adient and Solid Power, as reported by MarketBeat.com.

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

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

Insider and Institutional Ownership

92.4% of Adient shares are owned by institutional investors. Comparatively, 33.7% of Solid Power shares are owned by institutional investors. 0.9% of Adient shares are owned by company insiders. Comparatively, 5.7% of Solid Power shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

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

Solid Power has lower revenue, but higher earnings 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 Adient and Solid Power’s net margins, return on equity and return on assets.

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

Summary

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

About Adient

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.

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.