Comparing Gentex (NASDAQ:GNTX) & SES AI (NYSE:SES)

Gentex (NASDAQ:GNTX) and SES AI (NYSE:SES) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gentex and SES AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentex	0	6	1	1	2.38
SES AI	1	1	1	0	2.00

Gentex currently has a consensus price target of $26.83, suggesting a potential upside of 4.41%. SES AI has a consensus price target of $2.70, suggesting a potential upside of 155.92%. Given SES AI’s higher possible upside, analysts clearly believe SES AI is more favorable than Gentex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentex	14.75%	16.27%	13.82%
SES AI	-331.72%	-28.65%	-23.21%

Insider & Institutional Ownership

86.8% of Gentex shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 0.6% of Gentex shares are held by company insiders. Comparatively, 13.8% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gentex and SES AI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentex	$2.53 billion	2.16	$384.84 million	$1.78	14.44
SES AI	$21.00 million	18.42	-$73.04 million	($0.22)	-4.80

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

Volatility and Risk

Gentex has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

Gentex beats SES AI on 10 of the 14 factors compared between the two stocks.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

About SES AI

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