Head to Head Contrast: AEye (NASDAQ:LIDR) & SEA (NYSE:SE)

SEA (NYSE:SE) and AEye (NASDAQ:LIDR) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

This table compares SEA and AEye”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$22.94 billion	2.95	$1.58 billion	$2.54	43.65
AEye	$230,000.00	269.81	-$33.96 million	($1.13)	-1.19

SEA has higher revenue and earnings than AEye. AEye is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SEA and AEye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEA	6.41%	14.12%	5.76%
AEye	-12,698.89%	-49.42%	-42.66%

Risk & Volatility

SEA has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, AEye has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500.

Insider and Institutional Ownership

59.5% of SEA shares are held by institutional investors. Comparatively, 21.6% of AEye shares are held by institutional investors. 0.2% of SEA shares are held by insiders. Comparatively, 11.9% of AEye shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SEA and AEye, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	0	4	9	1	2.79
AEye	1	0	2	0	2.33

SEA presently has a consensus price target of $155.54, suggesting a potential upside of 40.29%. AEye has a consensus price target of $4.75, suggesting a potential upside of 254.48%. Given AEye’s higher possible upside, analysts clearly believe AEye is more favorable than SEA.

Summary

SEA beats AEye on 11 of the 15 factors compared between the two stocks.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

About AEye

AEye, Inc., together with its subsidiaries, provides lidar systems for vehicle autonomy, advanced driver-assistance systems, and robotic vision applications in the United States, Europe, and Asia-Pacific. It offers 4Sight intelligent sensing lidar platform, including 4Sight at Design, Triggered 4Sight, Responsive 4Sight, and Predictive 4Sight; and 4Sight for automotive and industrial market. The company was formerly known as CF Finance Acquisition Corp. III and changed its name to AEye, Inc. in August 2021. AEye, Inc. was founded in 2013 and is headquartered in Dublin, California.