Critical Comparison: Hesai Group (NASDAQ:HSAI) and Innoviz Technologies (NASDAQ:INVZ)

Innoviz Technologies (NASDAQ:INVZ) and Hesai Group (NASDAQ:HSAI) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Volatility and Risk

Innoviz Technologies has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Hesai Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Innoviz Technologies and Hesai Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innoviz Technologies	-134.46%	-70.52%	-44.06%
Hesai Group	15.70%	8.04%	5.94%

Valuation & Earnings

This table compares Innoviz Technologies and Hesai Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviz Technologies	$48.44 million	4.06	-$94.76 million	($0.35)	-2.69
Hesai Group	$284.57 million	13.66	-$14.02 million	$0.42	66.10

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Innoviz Technologies and Hesai Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviz Technologies	1	0	3	0	2.50
Hesai Group	0	1	5	2	3.13

Innoviz Technologies presently has a consensus price target of $3.10, indicating a potential upside of 229.44%. Hesai Group has a consensus price target of $30.80, indicating a potential upside of 10.95%. Given Innoviz Technologies’ higher possible upside, research analysts clearly believe Innoviz Technologies is more favorable than Hesai Group.

Insider & Institutional Ownership

63.3% of Innoviz Technologies shares are owned by institutional investors. Comparatively, 48.5% of Hesai Group shares are owned by institutional investors. 11.2% of Innoviz Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Hesai Group beats Innoviz Technologies on 11 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 Hesai Group

Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR). Its LiDAR products are used in passenger and commercial vehicles with advanced driver assistance systems; autonomous passenger and freight mobility services; and other applications, such as delivery robots, street sweeping robots, and logistics robots in restricted areas. Hesai Group was founded in 2014 and is based in Shanghai, China.