Hesai Group (NASDAQ:HSAI – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Analyst Recommendations
This is a summary of recent recommendations for Hesai Group and SES AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hesai Group | 0 | 1 | 6 | 1 | 3.00 |
| SES AI | 1 | 1 | 1 | 0 | 2.00 |
Hesai Group presently has a consensus target price of $29.96, indicating a potential upside of 36.12%. SES AI has a consensus target price of $2.70, indicating a potential upside of 158.37%. Given SES AI’s higher probable upside, analysts clearly believe SES AI is more favorable than Hesai Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hesai Group | $432.94 million | 7.12 | $62.33 million | $0.40 | 55.03 |
| SES AI | $21.92 million | 17.48 | -$73.04 million | ($0.22) | -4.75 |
Hesai Group has higher revenue and earnings than SES AI. SES AI is trading at a lower price-to-earnings ratio than Hesai Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
48.5% of Hesai Group shares are owned by institutional investors. Comparatively, 29.8% of SES AI shares are owned by institutional investors. 13.8% 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 company will outperform the market over the long term.
Volatility and Risk
Hesai Group has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Profitability
This table compares Hesai Group and SES AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hesai Group | 14.47% | 6.63% | 5.11% |
| SES AI | -331.72% | -28.65% | -23.21% |
Summary
Hesai Group beats SES AI on 12 of the 15 factors compared between the two stocks.
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.
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.
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