Head to Head Comparison: Visteon (NASDAQ:VC) versus Hesai Group (NASDAQ:HSAI)

Hesai Group (NASDAQ:HSAI) and Visteon (NASDAQ:VC) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hesai Group and Visteon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	6	1	3.00
Visteon	0	6	8	0	2.57

Hesai Group presently has a consensus target price of $29.96, indicating a potential upside of 49.13%. Visteon has a consensus target price of $122.25, indicating a potential upside of 31.28%. Given Hesai Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hesai Group is more favorable than Visteon.

Risk and Volatility

Hesai Group has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Visteon has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Hesai Group and Visteon’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%
Visteon	6.93%	17.94%	8.54%

Valuation and Earnings

This table compares Hesai Group and Visteon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$432.94 million	6.50	$62.33 million	$0.40	50.23
Visteon	$3.77 billion	0.66	$201.00 million	$9.43	9.87

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

Insider & Institutional Ownership

48.5% of Hesai Group shares are held by institutional investors. Comparatively, 99.7% of Visteon shares are held by institutional investors. 2.0% of Visteon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Visteon beats Hesai Group on 8 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 Visteon

Visteon Corporation, an automotive technology company, designs, manufactures, and sells automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters for 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as active privacy, TrueColor enhancement, local dimming, cameras, optics, haptic feedback, and light effects; and infotainment and connected car solutions, including scalable Android infotainment for seamless connectivity, as well as onboard artificial intelligence-based voice assistants with natural language understanding. It offers wired and wireless battery management systems; power electronics units; and telematics control units to enable secure connected car services, software updates, and data. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; SmartCore Runtime, a middleware enabling communication between domains and apps to be shown on any display; SmartCore Studio, a PC-based configuration tool to generate hypervisor configurations; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions, into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.