Contrasting XCHG (NASDAQ:XCH) & SES AI (NYSE:SES)

SES AI (NYSE:SES) and XCHG (NASDAQ:XCH) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares SES AI and XCHG’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%
XCHG	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SES AI and XCHG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
XCHG	1	1	0	0	1.50

SES AI currently has a consensus target price of $2.55, indicating a potential upside of 232.90%. Given SES AI’s stronger consensus rating and higher probable upside, analysts plainly believe SES AI is more favorable than XCHG.

Risk & Volatility

SES AI has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, XCHG has a beta of -1.43, suggesting that its stock price is 243% less volatile than the S&P 500.

Valuation and Earnings

This table compares SES AI and XCHG”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	$21.00 million	13.54	-$73.04 million	($0.20)	-3.83
XCHG	$25.10 million	0.78	-$32.50 million	($1.60)	-3.00

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

Institutional & Insider Ownership

29.8% of SES AI shares are owned by institutional investors. 12.7% of SES AI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

SES AI beats XCHG on 8 of the 14 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 XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.