Ouster (NASDAQ:OUST – Get Free Report) and MultiSensor AI (NASDAQ:MSAI – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Analyst Recommendations
This is a summary of current ratings for Ouster and MultiSensor AI, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ouster | 1 | 1 | 6 | 0 | 2.62 |
| MultiSensor AI | 1 | 1 | 0 | 1 | 2.33 |
Ouster presently has a consensus target price of $54.67, suggesting a potential upside of 54.73%. MultiSensor AI has a consensus target price of $120.00, suggesting a potential upside of 2,480.65%. Given MultiSensor AI’s higher possible upside, analysts clearly believe MultiSensor AI is more favorable than Ouster.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ouster | $169.38 million | 15.04 | -$60.38 million | ($0.86) | -41.08 |
| MultiSensor AI | $6.27 million | 1.64 | -$11.71 million | ($5.62) | -0.83 |
MultiSensor AI has lower revenue, but higher earnings than Ouster. Ouster is trading at a lower price-to-earnings ratio than MultiSensor AI, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ouster and MultiSensor AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ouster | -26.02% | -17.49% | -12.97% |
| MultiSensor AI | -141.70% | -36.08% | -31.31% |
Volatility and Risk
Ouster has a beta of 3.23, meaning that its share price is 223% more volatile than the S&P 500. Comparatively, MultiSensor AI has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500.
Institutional and Insider Ownership
31.5% of Ouster shares are owned by institutional investors. Comparatively, 82.3% of MultiSensor AI shares are owned by institutional investors. 5.7% of Ouster shares are owned by company insiders. Comparatively, 50.8% of MultiSensor AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Ouster beats MultiSensor AI on 9 of the 15 factors compared between the two stocks.
About Ouster
Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.
About MultiSensor AI
MultiSensor AI Holdings, Inc. manufactures and distributes multi-sensor systems for thermographic and other use in various industrial applications in the United States and internationally. The company offers sensor devices ranging from small to large handheld designs with built-in displays and controls, fixed-mounted pan-tilt-zoom single- and multi-sensor camera standalone systems, and mobile multi-sensor payload and gimbal systems for unmanned aerial vehicles and unmanned ground vehicles. It also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers operating in the distribution and logistics, manufacturing, utility, and oil and gas sectors. The company was founded in 1995 and is headquartered in Beaumont, Texas.
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