Iochpe-Maxion (OTCMKTS:IOCJY) and SES AI (NYSE:SES) Financial Contrast

Iochpe-Maxion (OTCMKTS:IOCJY) 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, valuation, institutional ownership, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Iochpe-Maxion and SES AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iochpe-Maxion	0	1	0	0	2.00
SES AI	1	0	1	0	2.00

SES AI has a consensus target price of $4.00, indicating a potential upside of 282.78%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than Iochpe-Maxion.

Valuation & Earnings

This table compares Iochpe-Maxion 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
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	17.64
SES AI	$21.00 million	18.24	-$73.04 million	($0.22)	-4.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iochpe-Maxion	0.63%	2.06%	0.65%
SES AI	-347.81%	-28.19%	-23.42%

Risk & Volatility

Iochpe-Maxion has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

29.8% of SES AI shares are owned by institutional investors. 13.8% of SES AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Iochpe-Maxion beats SES AI on 7 of the 13 factors compared between the two stocks.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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.