Contrasting Cooper-Standard (NYSE:CPS) and Solid Power (NASDAQ:SLDP)

Solid Power (NASDAQ:SLDP) and Cooper-Standard (NYSE:CPS) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solid Power	-429.55%	-24.88%	-23.07%
Cooper-Standard	1.20%	N/A	-0.15%

Risk & Volatility

Solid Power has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Cooper-Standard has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Institutional & Insider Ownership

33.7% of Solid Power shares are held by institutional investors. Comparatively, 69.1% of Cooper-Standard shares are held by institutional investors. 4.9% of Solid Power shares are held by company insiders. Comparatively, 8.8% of Cooper-Standard shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Solid Power and Cooper-Standard”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$20.14 million	48.56	-$96.52 million	($0.53)	-9.66
Cooper-Standard	$2.73 billion	0.20	-$78.75 million	$1.82	17.20

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Solid Power and Cooper-Standard, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	0	1	0	2.00
Cooper-Standard	1	2	1	0	2.00

Solid Power currently has a consensus price target of $7.00, indicating a potential upside of 36.72%. Cooper-Standard has a consensus price target of $26.50, indicating a potential downside of 15.34%. Given Solid Power’s higher probable upside, analysts clearly believe Solid Power is more favorable than Cooper-Standard.

Summary

Cooper-Standard beats Solid Power on 10 of the 12 factors compared between the two stocks.

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.

About Cooper-Standard

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.