Financial Survey: Simulations Plus (NASDAQ:SLP) versus Pony AI (NASDAQ:PONY)

Pony AI (NASDAQ:PONY) and Simulations Plus (NASDAQ:SLP) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Pony AI and Simulations Plus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	0	0	3	0	3.00
Simulations Plus	0	1	5	1	3.00

Pony AI currently has a consensus price target of $19.20, suggesting a potential upside of 42.86%. Simulations Plus has a consensus price target of $49.40, suggesting a potential upside of 45.34%. Given Simulations Plus’ higher possible upside, analysts clearly believe Simulations Plus is more favorable than Pony AI.

Profitability

This table compares Pony AI and Simulations Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	N/A	N/A	N/A
Simulations Plus	10.97%	6.84%	6.34%

Institutional & Insider Ownership

78.1% of Simulations Plus shares are owned by institutional investors. 19.4% of Simulations Plus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Pony AI and Simulations Plus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	N/A	N/A	N/A	N/A	N/A
Simulations Plus	$70.01 million	9.75	$9.95 million	$0.40	84.98

Simulations Plus has higher revenue and earnings than Pony AI.

Summary

Simulations Plus beats Pony AI on 9 of the 9 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

About Simulations Plus

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.