Denso (OTCMKTS:DNZOY) & SES AI (NYSE:SES) Head-To-Head Review

Denso (OTCMKTS:DNZOY) and SES AI (NYSE:SES) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Denso and SES AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denso	0	3	0	0	2.00
SES AI	1	1	1	0	2.00

SES AI has a consensus target price of $2.70, indicating a potential upside of 163.41%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than Denso.

Earnings and Valuation

This table compares Denso and SES AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Denso	$50.09 billion	0.70	$2.95 billion	$1.07	11.21
SES AI	$21.92 million	17.15	-$73.04 million	($0.22)	-4.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Denso	5.82%	8.29%	5.23%
SES AI	-331.72%	-28.65%	-23.21%

Insider & Institutional Ownership

29.8% of SES AI shares are owned by institutional investors. 13.8% of SES AI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Denso has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Denso beats SES AI on 8 of the 13 factors compared between the two stocks.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.

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.