Analyzing Vestas Wind Systems AS (OTCMKTS:VWDRY) and SES AI (NYSE:SES)

Vestas Wind Systems AS (OTCMKTS:VWDRY – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations for Vestas Wind Systems AS and SES AI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vestas Wind Systems AS 1 1 1 4 3.14
SES AI 1 1 1 0 2.00

SES AI has a consensus target price of $2.55, indicating a potential upside of 227.34%. Given SES AI’s higher probable upside, analysts clearly believe SES AI is more favorable than Vestas Wind Systems AS.

Earnings and Valuation

This table compares Vestas Wind Systems AS and SES AI”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vestas Wind Systems AS $21.29 billion 1.31 $880.23 million $0.43 21.67
SES AI $21.00 million 13.77 -$73.04 million ($0.20) -3.90

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

Volatility and Risk

Vestas Wind Systems AS has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Vestas Wind Systems AS and SES AI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vestas Wind Systems AS 5.42% 29.07% 4.22%
SES AI -289.64% -26.21% -20.78%

Summary

Vestas Wind Systems AS beats SES AI on 10 of the 14 factors compared between the two stocks.

About Vestas Wind Systems AS

(Get Free Report)

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.

About SES AI

(Get Free Report)

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.

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