Analyzing Hesai Group (NASDAQ:HSAI) & Holley (NYSE:HLLY)

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

Institutional and Insider Ownership

39.7% of Holley shares are held by institutional investors. Comparatively, 48.5% of Hesai Group shares are held by institutional investors. 0.9% of Holley shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Holley and Hesai Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Holley	-4.16%	6.75%	2.53%
Hesai Group	15.70%	8.04%	5.94%

Valuation & Earnings

This table compares Holley and Hesai Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holley	$602.22 million	0.84	-$23.24 million	($0.22)	-19.05
Hesai Group	$284.57 million	10.86	-$14.02 million	$0.42	56.10

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Holley and Hesai Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holley	1	1	5	0	2.57
Hesai Group	0	1	6	2	3.11

Holley presently has a consensus price target of $4.50, suggesting a potential upside of 7.40%. Hesai Group has a consensus price target of $30.80, suggesting a potential upside of 30.73%. Given Hesai Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hesai Group is more favorable than Holley.

Volatility and Risk

Holley has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Summary

Hesai Group beats Holley on 12 of the 15 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 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.