Financial Contrast: ChargePoint (NYSE:CHPT) versus SES AI (NYSE:SES)

ChargePoint (NYSE:CHPT) and SES AI (NYSE:SES) are both small-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, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ChargePoint and SES AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	3	6	1	0	1.80
SES AI	1	1	1	0	2.00

ChargePoint presently has a consensus price target of $8.31, indicating a potential upside of 49.10%. SES AI has a consensus price target of $2.70, indicating a potential upside of 202.01%. Given SES AI’s stronger consensus rating and higher probable upside, analysts plainly believe SES AI is more favorable than ChargePoint.

Valuation and Earnings

This table compares ChargePoint and SES AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$411.22 million	0.33	-$220.20 million	($8.68)	-0.64
SES AI	$21.00 million	15.61	-$73.04 million	($0.22)	-4.06

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

Institutional and Insider Ownership

37.8% of ChargePoint shares are owned by institutional investors. Comparatively, 29.8% of SES AI shares are owned by institutional investors. 4.2% of ChargePoint shares are owned by insiders. Comparatively, 13.8% of SES AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

ChargePoint has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-49.66%	-504.42%	-18.93%
SES AI	-331.72%	-28.65%	-23.21%

Summary

SES AI beats ChargePoint on 7 of the 13 factors compared between the two stocks.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

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.