Critical Survey: WeRide (NASDAQ:WRD) versus Innoviz Technologies (NASDAQ:INVZ)

Innoviz Technologies (NASDAQ:INVZGet Free Report) and WeRide (NASDAQ:WRDGet Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

63.3% of Innoviz Technologies shares are owned by institutional investors. 11.2% of Innoviz Technologies shares are owned by insiders. Comparatively, 2.7% of WeRide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Innoviz Technologies and WeRide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innoviz Technologies 1 0 1 0 2.00
WeRide 1 1 6 0 2.62

Innoviz Technologies presently has a consensus price target of $2.00, suggesting a potential upside of 438.65%. WeRide has a consensus price target of $12.32, suggesting a potential upside of 110.60%. Given Innoviz Technologies’ higher probable upside, equities analysts clearly believe Innoviz Technologies is more favorable than WeRide.

Risk and Volatility

Innoviz Technologies has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, WeRide has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Earnings and Valuation

This table compares Innoviz Technologies and WeRide”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innoviz Technologies $55.09 million 1.45 -$67.79 million ($0.38) -0.98
WeRide $97.89 million 18.57 -$230.20 million ($0.75) -7.80

Innoviz Technologies has higher earnings, but lower revenue than WeRide. WeRide is trading at a lower price-to-earnings ratio than Innoviz Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Innoviz Technologies and WeRide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innoviz Technologies -153.10% -118.08% -61.27%
WeRide -199.09% -24.12% -20.92%

About Innoviz Technologies

(Get Free Report)

Innoviz Technologies Ltd. manufactures and sells automotive grade LiDAR sensors and perception software to enable safe autonomous driving at a mass scale. The company offers InnovizOne, a solid-state LiDAR sensor designed for automakers and robotaxis, shuttles, trucks, and delivery companies requiring an automotive-grade and mass-producible solution to achieve autonomy. It also provides InnovizTwo, an automotive-grade LiDAR sensor that offers a solution for all levels of autonomous driving, as well as an option to integrate the perception application in the LiDAR sensor; and perception application, a software application that raw point cloud data from Innoviz LiDAR products into perception outputs. The company operates in Europe, Asia Pacific, the Middle East, Africa, and North America. It markets and sells its products through a direct sales organization, as well as through distribution channels. The company is headquartered in Rosh Haayin, Israel.

About WeRide

(Get Free Report)

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.

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