Eaton (NYSE:ETN) vs. SES AI (NYSE:SES) Head-To-Head Analysis

SES AI (NYSE:SES) and Eaton (NYSE:ETN) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Institutional and Insider Ownership

29.8% of SES AI shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 13.8% of SES AI shares are held by insiders. Comparatively, 0.1% of Eaton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SES AI	-289.64%	-26.21%	-20.78%
Eaton	12.75%	24.58%	9.98%

Earnings & Valuation

This table compares SES AI and Eaton”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$21.00 million	16.25	-$73.04 million	($0.20)	-4.59
Eaton	$27.45 billion	5.77	$4.09 billion	$9.83	41.51

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
Eaton	0	2	21	1	2.96

SES AI presently has a consensus price target of $2.55, indicating a potential upside of 177.48%. Eaton has a consensus price target of $481.41, indicating a potential upside of 17.98%. Given SES AI’s higher probable upside, equities research analysts plainly believe SES AI is more favorable than Eaton.

Volatility & Risk

SES AI has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Eaton has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Summary

Eaton beats SES AI on 12 of the 15 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 Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.