SES AI (NYSE:SES) versus Adient (NYSE:ADNT) Critical Survey

SES AI (NYSE:SES) and Adient (NYSE:ADNT) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares SES AI and Adient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SES AI	N/A	-32.65%	-28.67%
Adient	-1.86%	7.70%	1.90%

Earnings & Valuation

This table compares SES AI and Adient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$2.04 million	218.49	-$100.18 million	($0.30)	-4.05
Adient	$14.69 billion	0.12	$18.00 million	($3.20)	-6.80

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

Risk & Volatility

SES AI has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Adient has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Institutional & Insider Ownership

29.8% of SES AI shares are owned by institutional investors. Comparatively, 92.4% of Adient shares are owned by institutional investors. 15.1% of SES AI shares are owned by insiders. Comparatively, 0.7% of Adient shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SES AI and Adient, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
Adient	2	7	0	0	1.78

SES AI presently has a consensus price target of $1.50, suggesting a potential upside of 23.46%. Adient has a consensus price target of $20.06, suggesting a potential downside of 7.76%. Given SES AI’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SES AI is more favorable than Adient.

Summary

SES AI beats Adient on 8 of the 14 factors compared between the two stocks.

About SES AI

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.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.