Hesai Group (NASDAQ:HSAI) and Magna International (NYSE:MGA) Head-To-Head Review

Magna International (NYSE:MGA) and Hesai Group (NASDAQ:HSAI) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Magna International and Hesai Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magna International	1	10	8	1	2.45
Hesai Group	0	1	4	1	3.00

Magna International presently has a consensus price target of $65.73, suggesting a potential downside of 4.26%. Hesai Group has a consensus price target of $31.50, suggesting a potential upside of 86.39%. Given Hesai Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hesai Group is more favorable than Magna International.

Volatility & Risk

Magna International has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magna International	1.60%	14.01%	5.53%
Hesai Group	14.75%	6.03%	4.77%

Insider & Institutional Ownership

67.5% of Magna International shares are owned by institutional investors. Comparatively, 48.5% of Hesai Group shares are owned by institutional investors. 0.5% of Magna International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magna International	$42.01 billion	0.44	$829.00 million	$2.39	28.73
Hesai Group	$432.94 million	5.46	$62.33 million	$0.44	38.41

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

Summary

Magna International beats Hesai Group on 9 of the 14 factors compared between the two stocks.

About Magna International

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis system, battery enclosures, and engineering and testing; and exteriors, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, side doors, and greenhouse products. The Power & Vision segment offers electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; far camera module, remote camera heads, interior sensing camera, radars, thermal sensing, and domain controllers; interior and exterior mirrors, camera monitoring system driver/occupant monitoring systems, and smart actuators; forward and rear lighting, and lit grilles/panels/displays; latching system, door modules, charge port doors, power system, hinges, and door handles; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.

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.