Critical Contrast: Mobileye Global (NASDAQ:MBLY) and SES AI (NYSE:SES)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SES AI	-331.72%	-28.65%	-23.21%
Mobileye Global	-201.49%	0.70%	0.67%

Analyst Ratings

This is a summary of recent ratings and price targets for SES AI and Mobileye Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
Mobileye Global	2	11	10	2	2.48

SES AI presently has a consensus target price of $2.70, suggesting a potential upside of 386.49%. Mobileye Global has a consensus target price of $12.64, suggesting a potential upside of 59.15%. Given SES AI’s higher possible upside, analysts clearly believe SES AI is more favorable than Mobileye Global.

Institutional and Insider Ownership

29.8% of SES AI shares are owned by institutional investors. Comparatively, 13.3% of Mobileye Global shares are owned by institutional investors. 13.8% of SES AI shares are owned by company insiders. Comparatively, 10.0% of Mobileye Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

SES AI has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Mobileye Global has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares SES AI and Mobileye Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$21.00 million	9.69	-$73.04 million	($0.22)	-2.52
Mobileye Global	$1.89 billion	3.52	-$392.00 million	($4.99)	-1.59

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

Summary

Mobileye Global beats SES AI on 9 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 Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.