Analyzing Innoviz Technologies (NASDAQ:INVZ) and Gentherm (NASDAQ:THRM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentherm	0.57%	10.30%	5.05%
Innoviz Technologies	-171.19%	-137.96%	-67.50%

Insider & Institutional Ownership

97.1% of Gentherm shares are owned by institutional investors. Comparatively, 63.3% of Innoviz Technologies shares are owned by institutional investors. 2.1% of Gentherm 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, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	2	3	5	0	2.30
Innoviz Technologies	1	1	1	0	2.00

Gentherm currently has a consensus price target of $43.57, indicating a potential upside of 51.34%. Innoviz Technologies has a consensus price target of $2.00, indicating a potential upside of 974.69%. Given Innoviz Technologies’ higher probable upside, analysts plainly believe Innoviz Technologies is more favorable than Gentherm.

Volatility & Risk

Gentherm has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Innoviz Technologies has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.50 billion	1.01	$18.28 million	$0.30	95.97
Innoviz Technologies	$55.09 million	0.72	-$67.79 million	($0.38)	-0.49

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

Summary

Gentherm beats Innoviz Technologies on 11 of the 14 factors compared between the two stocks.

About Gentherm

Gentherm Inc. develops and manufactures thermal management technologies for the automotive and medical industries. Its automotive products help regulate temperature and comfort in vehicle interiors, including heated and ventilated seating, heated steering wheels, and other climate-control systems. The company also provides temperature-management products for healthcare, including systems used to warm or cool patients in clinical settings. Gentherm serves automotive manufacturers and healthcare customers in markets around the world.

About Innoviz Technologies

Innoviz Technologies Ltd. (NASDAQ: INVZ) develops lidar sensors and perception software for the automotive industry. Its technology is designed to help vehicles detect and interpret their surroundings for advanced driver-assistance systems (ADAS) and autonomous driving applications. The company’s solutions are intended to provide three-dimensional sensing, object detection and mapping capabilities in a range of driving environments. Innoviz’s product portfolio includes the InnovizOne and InnovizTwo lidar platforms, along with related perception software and supporting technologies.