Hesai Group (NASDAQ:HSAI) & Faraday Future Intelligent Electric (NASDAQ:FFAI) Critical Analysis

Faraday Future Intelligent Electric (NASDAQ:FFAI) and Hesai Group (NASDAQ:HSAI) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Faraday Future Intelligent Electric and Hesai Group, as provided by MarketBeat.

	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	3	3.22

Faraday Future Intelligent Electric currently has a consensus price target of $5.00, indicating a potential upside of 719.67%. Hesai Group has a consensus price target of $30.80, indicating a potential upside of 19.61%. Given Faraday Future Intelligent Electric’s higher probable upside, research analysts clearly believe Faraday Future Intelligent Electric is more favorable than Hesai Group.

Insider & Institutional 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 insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Faraday Future Intelligent Electric	$540,000.00	222.20	-$355.85 million	($1.84)	-0.33
Hesai Group	$284.57 million	12.67	-$14.02 million	$0.42	61.31

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.

Volatility and Risk

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

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%

Summary

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

About Faraday Future Intelligent Electric

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

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.