Head-To-Head Comparison: XPEL (NASDAQ:XPEL) vs. Luminar Technologies (NASDAQ:LAZR)

XPEL (NASDAQ:XPEL) and Luminar Technologies (NASDAQ:LAZR) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Insider & Institutional Ownership

75.1% of XPEL shares are owned by institutional investors. Comparatively, 31.0% of Luminar Technologies shares are owned by institutional investors. 9.5% of XPEL shares are owned by company insiders. Comparatively, 11.2% of Luminar Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares XPEL and Luminar Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.84%	21.17%	16.90%
Luminar Technologies	-160.33%	N/A	-91.91%

Analyst Ratings

This is a summary of current ratings and target prices for XPEL and Luminar Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	0	0	2.00
Luminar Technologies	2	2	0	0	1.50

Luminar Technologies has a consensus target price of $8.50, suggesting a potential upside of 632.76%. Given Luminar Technologies’ higher possible upside, analysts plainly believe Luminar Technologies is more favorable than XPEL.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$420.40 million	2.24	$45.49 million	$1.76	19.38
Luminar Technologies	$75.39 million	1.06	-$273.14 million	($2.80)	-0.41

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

Volatility & Risk

XPEL has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Luminar Technologies has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Summary

XPEL beats Luminar Technologies on 10 of the 13 factors compared between the two stocks.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

About Luminar Technologies

Luminar Technologies, Inc., an automotive technology company, provides sensor technologies and software for passenger cars and commercial trucks in North America, the Asia Pacific, Europe, and the Middle East. It operates in two segments, Autonomy Solutions and Advanced Technologies and Services. The Autonomy Solutions segment designs, manufactures, and sells laser imaging, detection, and ranging sensors or lidars, as well as related perception and autonomy software solutions primarily for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi, and adjacent industries. The Advanced Technologies and Services segment develops application-specific integrated circuits, pixel-based sensors, and advanced lasers. This segment also designs, tests, and provides consulting services for non-standard integrated circuits for use in automobile and aeronautics sector, as well as government spending in military and defense activities. The company was founded in 2012 and is headquartered in Orlando, Florida.