LeddarTech (NASDAQ:LDTC) and Tuya (NYSE:TUYA) Financial Analysis

LeddarTech (NASDAQ:LDTC) and Tuya (NYSE:TUYA) 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 risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Profitability

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

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

Institutional & Insider Ownership

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

Risk and Volatility

LeddarTech has a beta of -1.65, meaning that its share price is 265% less volatile than the S&P 500. Comparatively, Tuya has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

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

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

LeddarTech currently has a consensus price target of $3.00, suggesting a potential upside of 566.52%. Given LeddarTech’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LeddarTech is more favorable than Tuya.

Earnings and Valuation

This table compares LeddarTech and Tuya”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LeddarTech	$477,690.00	27.11	-$121.92 million	($3.23)	-0.14
Tuya	$298.62 million	5.38	-$60.31 million	$0.01	297.60

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.

Summary

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

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.

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.