Head to Head Analysis: Regal Rexnord (NYSE:RRX) & Hesai Group (NASDAQ:HSAI)

Hesai Group (NASDAQ:HSAI) and Regal Rexnord (NYSE:RRX) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Risk & Volatility

Hesai Group has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

48.5% of Hesai Group shares are held by institutional investors. Comparatively, 99.7% of Regal Rexnord shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hesai Group and Regal Rexnord, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	2	0	2.67
Regal Rexnord	0	1	5	0	2.83

Regal Rexnord has a consensus price target of $188.00, indicating a potential upside of 23.65%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, analysts plainly believe Regal Rexnord is more favorable than Hesai Group.

Earnings and Valuation

This table compares Hesai Group and Regal Rexnord’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$1.81 billion	0.33	-$67.04 million	($0.51)	-9.14
Regal Rexnord	$6.25 billion	1.62	-$57.40 million	($0.48)	-316.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hesai Group	-25.68%	-9.83%	-7.10%
Regal Rexnord	-0.48%	9.42%	3.86%

Summary

Regal Rexnord beats Hesai Group 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 Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.