Hesai Group (NASDAQ:HSAI) versus Autoliv (NYSE:ALV) Financial Analysis

Hesai Group (NASDAQ:HSAI) and Autoliv (NYSE:ALV) are both mid-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares Hesai Group and Autoliv”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$284.57 million	13.41	-$14.02 million	$0.42	64.88
Autoliv	$10.82 billion	0.83	$735.00 million	$9.56	12.63

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

Insider & Institutional Ownership

48.5% of Hesai Group shares are held by institutional investors. Comparatively, 69.6% of Autoliv shares are held by institutional investors. 0.2% of Autoliv shares are held by company 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 Hesai Group and Autoliv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hesai Group	15.70%	8.04%	5.94%
Autoliv	6.80%	30.42%	9.01%

Analyst Recommendations

This is a summary of recent ratings for Hesai Group and Autoliv, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	5	2	3.13
Autoliv	0	3	10	0	2.77

Hesai Group presently has a consensus target price of $30.80, suggesting a potential upside of 13.03%. Autoliv has a consensus target price of $134.40, suggesting a potential upside of 11.31%. Given Hesai Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hesai Group is more favorable than Autoliv.

Volatility and Risk

Hesai Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

Autoliv beats Hesai Group on 9 of the 15 factors compared between the two stocks.

About Hesai Group

Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR). Its LiDAR products are used in passenger and commercial vehicles with advanced driver assistance systems; autonomous passenger and freight mobility services; and other applications, such as delivery robots, street sweeping robots, and logistics robots in restricted areas. Hesai Group was founded in 2014 and is based in Shanghai, China.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.