Contrasting ECARX (NASDAQ:ECX) & Innoviz Technologies (NASDAQ:INVZ)

Innoviz Technologies (NASDAQ:INVZ) and ECARX (NASDAQ:ECX) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Innoviz Technologies has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, ECARX has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Innoviz Technologies and ECARX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviz Technologies	1	0	1	0	2.00
ECARX	1	1	0	0	1.50

Innoviz Technologies presently has a consensus price target of $2.00, suggesting a potential upside of 794.45%. Given Innoviz Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Innoviz Technologies is more favorable than ECARX.

Institutional and Insider Ownership

63.3% of Innoviz Technologies shares are owned by institutional investors. 11.2% of Innoviz Technologies shares are owned by company insiders. Comparatively, 20.0% of ECARX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Innoviz Technologies and ECARX’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%
ECARX	-7.67%	N/A	-8.76%

Earnings & Valuation

This table compares Innoviz Technologies and ECARX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviz Technologies	$55.09 million	0.87	-$67.79 million	($0.38)	-0.59
ECARX	$847.90 million	0.33	-$66.04 million	($0.18)	-4.33

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

About Innoviz Technologies

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 ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.