Comparing Hesai Group (NASDAQ:HSAI) & Richtech Robotics (NASDAQ:RR)

Richtech Robotics (NASDAQ:RR) and Hesai Group (NASDAQ:HSAI) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Valuation and Earnings

This table compares Richtech Robotics and Hesai Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richtech Robotics	$4.39 million	39.81	-$8.14 million	($0.13)	-12.00
Hesai Group	$1.92 billion	1.09	-$67.04 million	($0.44)	-37.27

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

Insider and Institutional Ownership

0.0% of Richtech Robotics shares are held by institutional investors. Comparatively, 48.5% of Hesai Group shares are held by institutional investors. 41.3% of Richtech Robotics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Richtech Robotics	-203.60%	-32.24%	-29.63%
Hesai Group	-20.31%	-6.79%	-4.58%

Volatility & Risk

Richtech Robotics has a beta of -9.76, indicating that its stock price is 1,076% less volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Richtech Robotics and Hesai Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richtech Robotics	0	0	0	0	0.00
Hesai Group	0	1	1	0	2.50

Hesai Group has a consensus target price of $16.70, suggesting a potential upside of 1.83%. Given Hesai Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hesai Group is more favorable than Richtech Robotics.

Summary

Hesai Group beats Richtech Robotics on 9 of the 14 factors compared between the two stocks.

About Richtech Robotics

Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers. It primarily serves restaurants, hotels, casinos, senior living centers, factories, and retail centers, as well as hospitals, and movie theaters. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022. Richtech Robotics Inc. was incorporated in 2016 and is headquartered in Las Vegas, Nevada.

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.