MultiSensor AI (NASDAQ:MSAI) versus Ouster (NASDAQ:OUST) Head to Head Review

MultiSensor AI (NASDAQ:MSAI) and Ouster (NASDAQ:OUST) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

82.3% of MultiSensor AI shares are owned by institutional investors. Comparatively, 31.5% of Ouster shares are owned by institutional investors. 50.8% of MultiSensor AI shares are owned by company insiders. Comparatively, 5.7% of Ouster shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MultiSensor AI and Ouster, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MultiSensor AI	1	1	0	0	1.50
Ouster	1	1	6	0	2.62

Ouster has a consensus target price of $54.67, indicating a potential upside of 89.42%. Given Ouster’s stronger consensus rating and higher possible upside, analysts plainly believe Ouster is more favorable than MultiSensor AI.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MultiSensor AI	$5.55 million	1.66	-$11.71 million	($5.62)	-0.74
Ouster	$169.38 million	12.29	-$60.38 million	($0.86)	-33.56

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

Profitability

This table compares MultiSensor AI and Ouster’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MultiSensor AI	-141.70%	-36.08%	-31.31%
Ouster	-26.02%	-17.49%	-12.97%

Risk & Volatility

MultiSensor AI has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500. Comparatively, Ouster has a beta of 3.23, meaning that its share price is 223% more volatile than the S&P 500.

Summary

Ouster beats MultiSensor AI on 10 of the 14 factors compared between the two stocks.

About MultiSensor AI

MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.

About Ouster

Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.