Comparing U Power (NASDAQ:UCAR) and SES AI (NYSE:SES)

SES AI (NYSE:SES) and U Power (NASDAQ:UCAR) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares SES AI and U Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SES AI	-490.03%	-35.31%	-29.81%
U Power	N/A	N/A	N/A

Volatility and Risk

SES AI has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, U Power has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares SES AI and U Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$2.04 million	319.44	-$100.18 million	($0.28)	-6.38
U Power	$48.83 million	0.15	-$6.57 million	N/A	N/A

U Power has higher revenue and earnings than SES AI.

Institutional and Insider Ownership

29.8% of SES AI shares are held by institutional investors. Comparatively, 13.2% of U Power shares are held by institutional investors. 13.8% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for SES AI and U Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	0	1	0	2.00
U Power	1	0	1	0	2.00

SES AI currently has a consensus price target of $4.00, suggesting a potential upside of 124.09%. U Power has a consensus price target of $5.00, suggesting a potential upside of 212.50%. Given U Power’s higher probable upside, analysts plainly believe U Power is more favorable than SES AI.

Summary

U Power beats SES AI on 7 of the 10 factors compared between the two stocks.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.

About U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.