Head to Head Review: Hesai Group (NASDAQ:HSAI) versus Benchmark Electronics (NYSE:BHE)

Benchmark Electronics (NYSE:BHE) and Hesai Group (NASDAQ:HSAI) are both mid-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Benchmark Electronics and Hesai Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Electronics	0	2	2	0	2.50
Hesai Group	0	1	2	1	3.00

Benchmark Electronics currently has a consensus target price of $91.00, suggesting a potential upside of 12.00%. Hesai Group has a consensus target price of $23.50, suggesting a potential upside of 50.54%. Given Hesai Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hesai Group is more favorable than Benchmark Electronics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Benchmark Electronics	1.89%	7.28%	3.81%
Hesai Group	14.77%	5.52%	4.47%

Institutional & Insider Ownership

92.3% of Benchmark Electronics shares are held by institutional investors. Comparatively, 48.5% of Hesai Group shares are held by institutional investors. 1.1% of Benchmark Electronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Benchmark Electronics and Hesai Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Electronics	$2.66 billion	1.10	$24.85 million	$1.47	55.27
Hesai Group	$3.34 billion	0.65	$62.33 million	$0.41	38.07

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

Risk and Volatility

Benchmark Electronics has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Summary

Hesai Group beats Benchmark Electronics on 8 of the 14 factors compared between the two stocks.

About Benchmark Electronics

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also offers electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company provides precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.

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.