Financial Contrast: Innoviz Technologies (NASDAQ:INVZ) & Gentex (NASDAQ:GNTX)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentex	$2.31 billion	2.22	$404.49 million	$1.70	13.79
Innoviz Technologies	$24.27 million	7.81	-$94.76 million	($0.35)	-2.59

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

Analyst Recommendations

This is a summary of recent ratings for Gentex and Innoviz Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentex	0	7	2	0	2.22
Innoviz Technologies	1	0	3	0	2.50

Gentex currently has a consensus target price of $28.29, indicating a potential upside of 20.62%. Innoviz Technologies has a consensus target price of $3.10, indicating a potential upside of 241.52%. Given Innoviz Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Innoviz Technologies is more favorable than Gentex.

Institutional & Insider Ownership

86.8% of Gentex shares are held by institutional investors. Comparatively, 63.3% of Innoviz Technologies shares are held by institutional investors. 0.5% of Gentex shares are held by company insiders. Comparatively, 11.2% of Innoviz Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentex	15.61%	15.86%	13.87%
Innoviz Technologies	-134.46%	-70.52%	-44.06%

Risk & Volatility

Gentex has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Innoviz Technologies has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

Gentex beats Innoviz Technologies on 8 of the 14 factors compared between the two stocks.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

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.