Valeo (OTCMKTS:VLEEY) and Hesai Group (NASDAQ:HSAI) Critical Contrast

Hesai Group (NASDAQ:HSAI) and Valeo (OTCMKTS:VLEEY) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Hesai Group and Valeo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	6	2	3.11
Valeo	0	6	1	1	2.38

Hesai Group presently has a consensus target price of $30.80, suggesting a potential upside of 12.53%. Given Hesai Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hesai Group is more favorable than Valeo.

Risk and Volatility

Hesai Group has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Valeo has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

48.5% of Hesai Group shares are owned by institutional investors. Comparatively, 0.0% of Valeo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Hesai Group and Valeo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hesai Group	15.70%	8.04%	5.94%
Valeo	N/A	N/A	N/A

Earnings and Valuation

This table compares Hesai Group and Valeo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$284.57 million	12.61	-$14.02 million	$0.42	65.17
Valeo	$23.26 billion	0.15	$175.30 million	N/A	N/A

Valeo has higher revenue and earnings than Hesai Group.

Summary

Hesai Group beats Valeo on 9 of the 12 factors compared between the two stocks.

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.

About Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.