Critical Comparison: Faraday Future Intelligent Electric (NASDAQ:FFAI) versus Hesai Group (NASDAQ:HSAI)

Faraday Future Intelligent Electric (NASDAQ:FFAIGet Free Report) and Hesai Group (NASDAQ:HSAIGet Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Valuation and Earnings

This table compares Faraday Future Intelligent Electric and Hesai Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Faraday Future Intelligent Electric $642,000.00 137.01 -$355.85 million ($1.84) -0.24
Hesai Group $284.57 million 13.66 -$14.02 million $0.42 66.10

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

Risk & Volatility

Faraday Future Intelligent Electric has a beta of 5.24, indicating that its share price is 424% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

71.7% of Faraday Future Intelligent Electric shares are owned by institutional investors. Comparatively, 48.5% of Hesai Group shares are owned by institutional investors. 0.4% of Faraday Future Intelligent Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Faraday Future Intelligent Electric and Hesai Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Faraday Future Intelligent Electric -74,517.13% -518.14% -91.88%
Hesai Group 15.70% 8.04% 5.94%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Faraday Future Intelligent Electric and Hesai Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Faraday Future Intelligent Electric 1 1 1 0 2.00
Hesai Group 0 1 5 2 3.13

Faraday Future Intelligent Electric presently has a consensus target price of $5.00, suggesting a potential upside of 1,018.07%. Hesai Group has a consensus target price of $30.80, suggesting a potential upside of 10.95%. Given Faraday Future Intelligent Electric’s higher probable upside, equities analysts clearly believe Faraday Future Intelligent Electric is more favorable than Hesai Group.

Summary

Hesai Group beats Faraday Future Intelligent Electric on 10 of the 15 factors compared between the two stocks.

About Faraday Future Intelligent Electric

(Get Free Report)

Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.

About Hesai Group

(Get Free Report)

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.

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