Innoviz Technologies (NASDAQ:INVZ) versus Aptiv (NYSE:APTV) Critical Review

Innoviz Technologies (NASDAQ:INVZ) and Aptiv (NYSE:APTV) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Institutional and Insider Ownership

63.3% of Innoviz Technologies shares are held by institutional investors. Comparatively, 94.2% of Aptiv shares are held by institutional investors. 11.2% of Innoviz Technologies shares are held by company insiders. Comparatively, 0.1% of Aptiv shares are held by company 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 Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviz Technologies	1	0	1	0	2.00
Aptiv	2	4	17	1	2.71

Innoviz Technologies presently has a consensus target price of $2.00, suggesting a potential upside of 769.57%. Aptiv has a consensus target price of $72.60, suggesting a potential upside of 65.40%. Given Innoviz Technologies’ higher possible upside, equities analysts clearly believe Innoviz Technologies is more favorable than Aptiv.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviz Technologies	$55.09 million	0.90	-$67.79 million	($0.38)	-0.61
Aptiv	$20.40 billion	0.45	$165.00 million	$1.06	41.41

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

Volatility & Risk

Innoviz Technologies has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Innoviz Technologies and Aptiv’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%
Aptiv	1.17%	17.10%	7.03%

Summary

Aptiv beats Innoviz Technologies on 12 of the 15 factors compared between 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 Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.