Innoviz Technologies (NASDAQ:INVZ – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) 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 valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Volatility & Risk
Innoviz Technologies has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500.
Insider and Institutional Ownership
63.3% of Innoviz Technologies shares are held by institutional investors. Comparatively, 12.7% of REE Automotive shares are held by institutional investors. 11.2% of Innoviz Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innoviz Technologies | 1 | 0 | 1 | 0 | 2.00 |
| REE Automotive | 1 | 0 | 0 | 0 | 1.00 |
Innoviz Technologies currently has a consensus target price of $2.00, suggesting a potential upside of 469.15%. Given Innoviz Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Innoviz Technologies is more favorable than REE Automotive.
Earnings and Valuation
This table compares Innoviz Technologies and REE Automotive”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innoviz Technologies | $55.09 million | 1.37 | -$67.79 million | ($0.38) | -0.92 |
| REE Automotive | $1.30 million | 1.87 | -$55.81 million | ($5.28) | -0.01 |
REE Automotive has lower revenue, but higher earnings than Innoviz Technologies. Innoviz Technologies is trading at a lower price-to-earnings ratio than REE Automotive, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Innoviz Technologies and REE Automotive’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% |
| REE Automotive | N/A | N/A | N/A |
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 REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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