Hesai Group (NASDAQ:HSAI – Get Free Report) and Magna International (NYSE:MGA – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Risk and Volatility
Hesai Group has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Magna International has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Insider & Institutional Ownership
48.5% of Hesai Group shares are owned by institutional investors. Comparatively, 67.5% of Magna International shares are owned by institutional investors. 0.5% of Magna International shares are owned by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hesai Group | 0 | 1 | 4 | 1 | 3.00 |
| Magna International | 1 | 9 | 8 | 1 | 2.47 |
Hesai Group currently has a consensus price target of $31.50, indicating a potential upside of 75.88%. Magna International has a consensus price target of $67.33, indicating a potential downside of 6.03%. Given Hesai Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Hesai Group is more favorable than Magna International.
Valuation and Earnings
This table compares Hesai Group and Magna International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hesai Group | $432.94 million | 5.79 | $62.33 million | $0.44 | 40.70 |
| Magna International | $42.67 billion | 0.45 | $829.00 million | $2.76 | 25.96 |
Magna International has higher revenue and earnings than Hesai Group. Magna International is trading at a lower price-to-earnings ratio than Hesai Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hesai Group and Magna International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hesai Group | 14.75% | 6.03% | 4.77% |
| Magna International | 1.80% | 15.04% | 5.93% |
Summary
Magna International beats Hesai Group on 9 of the 14 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 Magna International
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis system, battery enclosures, and engineering and testing; and exteriors, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, side doors, and greenhouse products. The Power & Vision segment offers electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; far camera module, remote camera heads, interior sensing camera, radars, thermal sensing, and domain controllers; interior and exterior mirrors, camera monitoring system driver/occupant monitoring systems, and smart actuators; forward and rear lighting, and lit grilles/panels/displays; latching system, door modules, charge port doors, power system, hinges, and door handles; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.
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