Financial Analysis: Hesai Group (NASDAQ:HSAI) and AB Volvo (OTCMKTS:VLVLY)

AB Volvo (OTCMKTS:VLVLY) and Hesai Group (NASDAQ:HSAI) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares AB Volvo and Hesai Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.45	$3.52 billion	$2.03	17.26
Hesai Group	$3.03 billion	1.02	$62.33 million	$0.40	55.33

AB Volvo has higher revenue and earnings than Hesai Group. AB Volvo is trading at a lower price-to-earnings ratio than Hesai Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AB Volvo and Hesai Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	2	2.33
Hesai Group	0	1	6	1	3.00

Hesai Group has a consensus price target of $29.96, suggesting a potential upside of 35.37%. Given Hesai Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hesai Group is more favorable than AB Volvo.

Volatility and Risk

AB Volvo has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares AB Volvo and Hesai Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.32%	23.35%	5.99%
Hesai Group	14.47%	6.63%	5.11%

Insider and Institutional Ownership

0.0% of AB Volvo shares are owned by institutional investors. Comparatively, 48.5% of Hesai Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

About Hesai Group

Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR). Its LiDAR products are used in passenger and commercial vehicles with advanced driver assistance systems; autonomous passenger and freight mobility services; and other applications, such as delivery robots, street sweeping robots, and logistics robots in restricted areas. Hesai Group was founded in 2014 and is based in Shanghai, China.