China Automotive Systems (NASDAQ:CAAS – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Valuation and Earnings
This table compares China Automotive Systems and SES AI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Automotive Systems | $650.93 million | 0.19 | $29.98 million | $1.11 | 3.76 |
| SES AI | $21.00 million | 19.12 | -$73.04 million | ($0.22) | -4.98 |
Institutional and Insider Ownership
5.2% of China Automotive Systems shares are owned by institutional investors. Comparatively, 29.8% of SES AI shares are owned by institutional investors. 64.8% of China Automotive Systems shares are owned by insiders. Comparatively, 13.8% of SES AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares China Automotive Systems and SES AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Automotive Systems | 4.62% | 8.38% | 3.96% |
| SES AI | -347.81% | -28.19% | -23.42% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for China Automotive Systems and SES AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
| SES AI | 1 | 0 | 1 | 0 | 2.00 |
SES AI has a consensus price target of $4.00, suggesting a potential upside of 265.30%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than China Automotive Systems.
Volatility & Risk
China Automotive Systems has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Summary
China Automotive Systems beats SES AI on 9 of the 13 factors compared between the two stocks.
About China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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.
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