Critical Review: ScanTech AI Systems (STAI) and Its Competitors

ScanTech AI Systems (NASDAQ:STAI) is one of 55 publicly-traded companies in the “IT Services” industry, but how does it compare to its peers? We will compare ScanTech AI Systems to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ScanTech AI Systems and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanTech AI Systems	1	0	0	0	1.00
ScanTech AI Systems Competitors	422	2565	5269	189	2.62

As a group, “IT Services” companies have a potential upside of 24.67%. Given ScanTech AI Systems’ peers stronger consensus rating and higher possible upside, analysts clearly believe ScanTech AI Systems has less favorable growth aspects than its peers.

Risk and Volatility

ScanTech AI Systems has a beta of -0.84, suggesting that its stock price is 184% less volatile than the S&P 500. Comparatively, ScanTech AI Systems’ peers have a beta of -8.08, suggesting that their average stock price is 908% less volatile than the S&P 500.

Profitability

This table compares ScanTech AI Systems and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ScanTech AI Systems	N/A	N/A	N/A
ScanTech AI Systems Competitors	-118.57%	-17.25%	-6.02%

Earnings and Valuation

This table compares ScanTech AI Systems and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ScanTech AI Systems	$540,000.00	-$23.07 million	-1.36
ScanTech AI Systems Competitors	$23.99 billion	$365.78 million	48.78

ScanTech AI Systems’ peers have higher revenue and earnings than ScanTech AI Systems. ScanTech AI Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

74.0% of ScanTech AI Systems shares are held by institutional investors. Comparatively, 62.6% of shares of all “IT Services” companies are held by institutional investors. 2.3% of ScanTech AI Systems shares are held by insiders. Comparatively, 11.3% of shares of all “IT Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ScanTech AI Systems peers beat ScanTech AI Systems on 8 of the 13 factors compared.

About ScanTech AI Systems

Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.