Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Faraday Future Intelligent Electric and SES AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Faraday Future Intelligent Electric | -57,277.86% | -2,531.03% | -96.32% |
| SES AI | -331.72% | -28.65% | -23.21% |
Institutional & Insider Ownership
71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 0.3% of Faraday Future Intelligent Electric 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Faraday Future Intelligent Electric | $540,000.00 | 21.61 | -$390.70 million | ($1.86) | -3.08 |
| SES AI | $21.00 million | 9.51 | -$73.04 million | ($0.22) | -2.48 |
SES AI has higher revenue and earnings than Faraday Future Intelligent Electric. Faraday Future Intelligent Electric is trading at a lower price-to-earnings ratio than SES AI, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Faraday Future Intelligent Electric has a beta of 5.58, indicating that its share price is 458% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Faraday Future Intelligent Electric and SES AI, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
| SES AI | 1 | 1 | 1 | 0 | 2.00 |
Faraday Future Intelligent Electric currently has a consensus price target of $750.00, suggesting a potential upside of 13,011.89%. SES AI has a consensus price target of $2.70, suggesting a potential upside of 395.41%. Given Faraday Future Intelligent Electric’s higher probable upside, research analysts clearly believe Faraday Future Intelligent Electric is more favorable than SES AI.
Summary
SES AI beats Faraday Future Intelligent Electric on 8 of the 12 factors compared between the two stocks.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
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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