Contrasting Hesai Group (NASDAQ:HSAI) & Nidec (OTCMKTS:NJDCY)

Nidec (OTCMKTS:NJDCY) and Hesai Group (NASDAQ:HSAI) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nidec	N/A	N/A	N/A
Hesai Group	14.77%	5.52%	4.47%

Risk and Volatility

Nidec has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of Nidec shares are held by institutional investors. Comparatively, 48.5% of Hesai Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Nidec and Hesai Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nidec	0	3	0	0	2.00
Hesai Group	0	1	3	1	3.00

Hesai Group has a consensus target price of $29.75, suggesting a potential upside of 57.49%. Given Hesai Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hesai Group is more favorable than Nidec.

Earnings and Valuation

This table compares Nidec and Hesai Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nidec	$17.12 billion	2.32	$1.11 billion	$0.26	16.00
Hesai Group	$432.94 million	6.11	$62.33 million	$0.41	46.07

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

Summary

Hesai Group beats Nidec on 12 of the 14 factors compared between the two stocks.

About Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..

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.