WeRide (NASDAQ:WRD) versus Innoviz Technologies (NASDAQ:INVZ) Financial Contrast

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$97.89 million	18.15	-$230.20 million	($0.75)	-7.63
Innoviz Technologies	$55.09 million	1.54	-$67.79 million	($0.38)	-1.04

Innoviz Technologies has lower revenue, but higher earnings 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for WeRide and Innoviz Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	1	1	6	0	2.62
Innoviz Technologies	1	0	2	0	2.33

WeRide currently has a consensus target price of $12.58, suggesting a potential upside of 119.93%. Innoviz Technologies has a consensus target price of $2.65, suggesting a potential upside of 571.40%. Given Innoviz Technologies’ higher probable upside, analysts clearly believe Innoviz Technologies is more favorable than WeRide.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WeRide	-228.47%	-24.18%	-21.45%
Innoviz Technologies	-153.10%	-118.08%	-61.27%

Insider and Institutional Ownership

63.3% of Innoviz Technologies shares are owned by institutional investors. 2.7% of WeRide shares are owned by insiders. Comparatively, 11.2% of Innoviz Technologies shares are owned by 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.

About WeRide

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.

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.