Head-To-Head Comparison: Sensata Technologies (NYSE:ST) vs. SES AI (NYSE:SES)

Sensata Technologies (NYSE:ST) and SES AI (NYSE:SES) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

99.4% of Sensata Technologies shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 0.7% of Sensata Technologies shares are held by company insiders. Comparatively, 13.8% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sensata Technologies and SES AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	4	5	0	2.40
SES AI	1	1	1	0	2.00

Sensata Technologies currently has a consensus target price of $50.33, suggesting a potential upside of 30.71%. SES AI has a consensus target price of $1.10, suggesting a potential upside of 61.05%. Given SES AI’s higher possible upside, analysts plainly believe SES AI is more favorable than Sensata Technologies.

Profitability

This table compares Sensata Technologies and SES AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	9.52%	19.38%	8.43%
SES AI	-289.64%	-26.21%	-20.78%

Valuation and Earnings

This table compares Sensata Technologies 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
Sensata Technologies	$3.70 billion	1.51	$31.30 million	$2.50	15.40
SES AI	$23.46 million	10.81	-$73.04 million	($0.20)	-3.42

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

Volatility and Risk

Sensata Technologies has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

Sensata Technologies beats SES AI on 11 of the 14 factors compared between the two stocks.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.

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.