Hesai Group (NASDAQ:HSAI) vs. Aptiv (NYSE:APTV) Head-To-Head Review

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

Insider and Institutional Ownership

48.5% of Hesai Group shares are held by institutional investors. Comparatively, 94.2% of Aptiv shares are held by institutional investors. 0.1% of Aptiv shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$3.03 billion	1.09	$62.33 million	$0.40	58.75
Aptiv	$20.40 billion	0.62	$165.00 million	$0.76	77.74

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

Profitability

This table compares Hesai Group and Aptiv’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%
Aptiv	0.81%	18.22%	7.35%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	6	1	3.00
Aptiv	1	3	20	0	2.79

Hesai Group currently has a consensus price target of $29.96, suggesting a potential upside of 27.49%. Aptiv has a consensus price target of $90.49, suggesting a potential upside of 53.17%. Given Aptiv’s higher possible upside, analysts clearly believe Aptiv is more favorable than Hesai Group.

Volatility and Risk

Hesai Group has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Summary

Aptiv beats Hesai Group on 11 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 Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.