Comparing Hesai Group (NASDAQ:HSAI) & Reelcause (OTCMKTS:RCIT)

Hesai Group (NASDAQ:HSAI) and Reelcause (OTCMKTS:RCIT) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hesai Group	-20.31%	-6.79%	-4.58%
Reelcause	N/A	N/A	N/A

Earnings and Valuation

This table compares Hesai Group and Reelcause”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hesai Group	$2.08 billion	0.67	-$67.04 million	($0.13)	-84.23
Reelcause	N/A	N/A	N/A	N/A	N/A

Reelcause has lower revenue, but higher earnings than Hesai Group.

Institutional and Insider Ownership

48.5% of Hesai Group shares are held by institutional investors. 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 Reelcause, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hesai Group	0	1	2	1	3.00
Reelcause	0	0	0	0	0.00

Hesai Group currently has a consensus target price of $22.80, indicating a potential upside of 108.22%. Given Hesai Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hesai Group is more favorable than Reelcause.

Volatility and Risk

Hesai Group has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Reelcause has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Summary

Hesai Group beats Reelcause on 7 of the 10 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 Reelcause

Reelcause, Inc. does not have significant operations. The company intends to pursue the direct or indirect acquisition and development of real estate assets, and/or businesses related thereto. The company was formerly known as China Green Energy Industries, Inc. and changed its name to Reelcause, Inc. in December 2014. Reelcause, Inc. is based in Las Vegas, Nevada.