Head-To-Head Analysis: Tuya (NYSE:TUYA) versus LeddarTech (NASDAQ:LDTC)

Tuya (NYSE:TUYA) and LeddarTech (NASDAQ:LDTC) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Risk & Volatility

Tuya has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, LeddarTech has a beta of -1.48, suggesting that its share price is 248% less volatile than the S&P 500.

Insider & Institutional Ownership

11.5% of Tuya shares are owned by institutional investors. Comparatively, 9.6% of LeddarTech shares are owned by institutional investors. 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Tuya and LeddarTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tuya	-5.55%	-0.58%	-0.52%
LeddarTech	-3,899.24%	N/A	-95.37%

Valuation and Earnings

This table compares Tuya and LeddarTech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$298.62 million	4.07	-$60.31 million	$0.01	225.50
LeddarTech	$477,690.00	21.28	-$121.92 million	($3.23)	-0.11

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tuya and LeddarTech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	0	0	0	0.00
LeddarTech	0	1	1	0	2.50

LeddarTech has a consensus target price of $3.00, indicating a potential upside of 749.14%. Given LeddarTech’s stronger consensus rating and higher possible upside, analysts plainly believe LeddarTech is more favorable than Tuya.

Summary

Tuya beats LeddarTech on 8 of the 14 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

About LeddarTech

LeddarTech Holdings Inc. provides AI-based fusion and perception software solutions for advanced driver assistance solutions and autonomous driving applications in Canada. It offers LeddarVision, a raw sensor fusion and perception platform for automotive and off-road industrial vehicles. The company was founded in 2007 and is based in Quebec City, Canada.