Critical Analysis: SES AI (NYSE:SES) versus Spectrum Brands (NYSE:SPB)

Spectrum Brands (NYSE:SPB – Get Rating) and SES AI (NYSE:SES – Get Rating) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Valuation & Earnings

This table compares Spectrum Brands and SES AI’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$3.13 billion	0.88	$72.50 million	$1.75	38.46
SES AI	N/A	N/A	-$11.54 million	N/A	N/A

Spectrum Brands has higher revenue and earnings than SES AI.

Analyst Recommendations

This is a breakdown of recent recommendations for Spectrum Brands and SES AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	2	5	0	2.71
SES AI	0	3	0	0	2.00

Spectrum Brands currently has a consensus price target of $78.33, suggesting a potential upside of 16.39%. SES AI has a consensus price target of $7.00, suggesting a potential upside of 105.28%. Given SES AI’s higher possible upside, analysts clearly believe SES AI is more favorable than Spectrum Brands.

Volatility and Risk

Spectrum Brands has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, SES AI has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500.

Institutional and Insider Ownership

95.3% of Spectrum Brands shares are owned by institutional investors. Comparatively, 27.4% of SES AI shares are owned by institutional investors. 2.3% of Spectrum Brands shares are owned by insiders. Comparatively, 12.3% of SES AI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	2.29%	4.25%	0.95%
SES AI	N/A	-7.44%	-5.22%

Summary

Spectrum Brands beats SES AI on 8 of the 11 factors compared between the two stocks.

About Spectrum Brands

(Get Rating)

Spectrum Brands Holdings, Inc. is a consumer products and home essentials company, which engages in the manufacturing and supply of residential locksets, residential builders’ hardware, plumbing, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn, garden and home pest control products, and personal insect repellents. The firm operates through the following segments: Home and Personal Care (HPC), Global Pet Care (GPC), and Home and Garden (H&G). The GPC segment focuses on the pet care business. The H&G segment is involved in the home and garden, cleaning products, and insect control business. The HPC segment includes the small kitchen and personal care appliances business. The company was founded in 1906 and is headquartered in Middleton, WI.

About SES AI

(Get Rating)

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles and other applications. The company was founded in 2012 and is headquartered in Boston, Massachusetts.