Gentex (NASDAQ:GNTX – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
86.8% of Gentex shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 0.6% of Gentex 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Gentex has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, SES AI has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Gentex | 14.75% | 16.27% | 13.82% |
| SES AI | -331.72% | -28.65% | -23.21% |
Earnings & Valuation
This table compares Gentex and SES AI”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gentex | $2.53 billion | 2.16 | $384.84 million | $1.78 | 14.44 |
| SES AI | $21.00 million | 18.42 | -$73.04 million | ($0.22) | -4.80 |
Gentex has higher revenue and earnings than SES AI. SES AI is trading at a lower price-to-earnings ratio than Gentex, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Gentex and SES AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gentex | 0 | 6 | 1 | 1 | 2.38 |
| SES AI | 1 | 1 | 1 | 0 | 2.00 |
Gentex currently has a consensus target price of $26.83, indicating a potential upside of 4.41%. SES AI has a consensus target price of $2.70, indicating a potential upside of 155.92%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than Gentex.
Summary
Gentex beats SES AI on 10 of the 14 factors compared between the two stocks.
About Gentex
Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.
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.
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