SES AI (NYSE:SES) vs. Lear (NYSE:LEA) Head-To-Head Review

SES AI (NYSE:SES) and Lear (NYSE:LEA) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Risk & Volatility

SES AI has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Lear has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
Lear	0	9	4	0	2.31

SES AI presently has a consensus target price of $1.50, indicating a potential upside of 23.46%. Lear has a consensus target price of $113.00, indicating a potential upside of 21.49%. Given SES AI’s higher possible upside, equities research analysts clearly believe SES AI is more favorable than Lear.

Valuation and Earnings

This table compares SES AI and Lear”s gross revenue, earnings per share (EPS) 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
Lear	$23.31 billion	0.21	$506.60 million	$8.57	10.85

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

Institutional & Insider Ownership

29.8% of SES AI shares are owned by institutional investors. Comparatively, 97.0% of Lear shares are owned by institutional investors. 15.1% of SES AI shares are owned by insiders. Comparatively, 0.9% of Lear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SES AI and Lear’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%
Lear	2.05%	13.94%	4.63%

Summary

Lear beats SES AI on 11 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 Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.