Comparing Federal Screw Works (OTCMKTS:FSCR) and SES AI (NYSE:SES)

Federal Screw Works (OTCMKTS:FSCR) and SES AI (NYSE:SES) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Risk and Volatility

Federal Screw Works has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Federal Screw Works and SES AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.12	$1.62 million	$0.71	11.97
SES AI	$21.00 million	17.89	-$73.04 million	($0.22)	-4.66

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

Analyst Ratings

This is a summary of current recommendations for Federal Screw Works and SES AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
SES AI	1	0	1	0	2.00

SES AI has a consensus target price of $4.00, suggesting a potential upside of 290.24%. Given SES AI’s stronger consensus rating and higher probable upside, analysts plainly believe SES AI is more favorable than Federal Screw Works.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	0.99%	N/A	N/A
SES AI	-347.81%	-28.19%	-23.42%

Institutional and Insider Ownership

29.8% of SES AI shares are held by institutional investors. 46.2% of Federal Screw Works shares are held by insiders. Comparatively, 13.8% of SES AI shares are held 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.

Summary

Federal Screw Works beats SES AI on 9 of the 14 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

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.