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

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Hesai Group and Nidec, as provided by MarketBeat.com.

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

Hesai Group currently has a consensus price target of $29.75, indicating a potential upside of 57.49%. Given Hesai Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hesai Group is more favorable than Nidec.

Profitability

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

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

Insider and Institutional Ownership

48.5% of Hesai Group shares are owned by institutional investors. Comparatively, 0.2% of Nidec shares are owned 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.

Risk & Volatility

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

Valuation & Earnings

This table compares Hesai Group and Nidec”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	6.11	$62.33 million	$0.41	46.07
Nidec	$17.12 billion	2.32	$1.11 billion	$0.26	16.00

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 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 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..