Holley (NYSE:HLLY) vs. SES AI (NYSE:SES) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Holley	3.13%	4.84%	1.83%
SES AI	-347.81%	-28.19%	-23.42%

Analyst Recommendations

This is a summary of recent recommendations for Holley and SES AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holley	0	2	4	0	2.67
SES AI	1	0	1	0	2.00

Holley currently has a consensus price target of $5.00, indicating a potential upside of 48.15%. SES AI has a consensus price target of $4.00, indicating a potential upside of 226.53%. Given SES AI’s higher possible upside, analysts clearly believe SES AI is more favorable than Holley.

Risk and Volatility

Holley has a beta of 1.42, indicating that its share price is 42% more 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.

Institutional and Insider Ownership

39.7% of Holley shares are owned by institutional investors. Comparatively, 29.8% of SES AI shares are owned by institutional investors. 4.9% of Holley shares are owned by insiders. Comparatively, 13.8% of SES AI shares are owned 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.

Valuation & Earnings

This table compares Holley 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
Holley	$613.51 million	0.67	$19.17 million	$0.15	22.50
SES AI	$21.00 million	21.39	-$73.04 million	($0.22)	-5.57

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

Summary

Holley beats SES AI on 11 of the 14 factors compared between the two stocks.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.

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.