PC Connection (NASDAQ:CNXN – Get Free Report) and Hesai Group (NASDAQ:HSAI – Get Free Report) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Risk & Volatility
PC Connection has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Valuation and Earnings
This table compares PC Connection and Hesai Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PC Connection | $2.99 billion | 0.76 | $83.72 million | $3.78 | 23.67 |
| Hesai Group | $3.34 billion | 0.65 | $62.33 million | $0.41 | 37.85 |
PC Connection has higher earnings, but lower revenue than Hesai Group. PC Connection is trading at a lower price-to-earnings ratio than Hesai Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for PC Connection and Hesai Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PC Connection | 0 | 0 | 1 | 1 | 3.50 |
| Hesai Group | 0 | 1 | 2 | 1 | 3.00 |
Hesai Group has a consensus price target of $23.50, suggesting a potential upside of 51.42%. Given Hesai Group’s higher possible upside, analysts clearly believe Hesai Group is more favorable than PC Connection.
Profitability
This table compares PC Connection and Hesai Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PC Connection | 3.21% | 10.90% | 7.29% |
| Hesai Group | 14.77% | 5.52% | 4.47% |
Institutional and Insider Ownership
42.8% of PC Connection shares are held by institutional investors. Comparatively, 48.5% of Hesai Group shares are held by institutional investors. 56.6% of PC Connection shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
About PC Connection
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
About Hesai Group
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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