![]() Velodyne has largely focused on high-performance, high-cost lidar sensors. Luminar’s Tech Hits The Sweetspot For Mass Market Luminar: Which Lidar Stock Should You Pick? for an overview of the two companies’ valuation and fundamental performance in recent years. Let’s take a look at the two companies’ businesses to understand what’s driving the disparity in their valuation and which could be the better pick. While Luminar’s market cap stands at roughly $10 billion, trading at over 350x projected 2021 revenue, Velodyne - which is actually the more established player in the lidar market - is valued at under $4 billion, or a P/S multiple of about 25x. However, the two stocks are valued rather differently. Lidar - a laser-based technology, which essentially helps computers detect surrounding objects - is poised to grow meaningfully, driven by the broader adoption of self-driving cars, helping both companies. Velodyne Lidar (NASDAQ: VLDR) and Luminar Technologies (NASDAQ: LAZR), two companies that specialize in lidar technology, went public this year. Luminar: Which Lidar Stock Should You Pick? This has also likely impacted Velodyne which trades at over 25x forward revenues. Separately, rising bond yields over the last month have taken some sheen off richly valued tech stocks. While Velodyne shipped a record 4,237 sensor units, its revenues fell by about 6% year-over-year to $17.85 million. Secondly, the company posted a larger than expected loss and declining revenues over Q4 2020, as it continued to reduce prices for its sensors, in order to attract new customers and drive higher volumes. Although the specific details have not been provided by the company, investors see corporate governance issues as a red flag and the stock fell by about 30% in the days following the news. So what’s driving the stock lower? Firstly, both the company’s Chairman of the Board and Chief Marketing Officer were replaced last month, after they were found to have behaved inappropriately with regard to Board and Company processes. Velodyne Lidar (NASDAQ: VLDR), a company that produces lidar sensors that are primarily used in self-driving vehicles, has seen its stock decline by about 40% over the last month. Why Velodyne Stock Has Been Trending Lower Luminar: Which Lidar Stock Should You Pick? for more details. Is Luminar, another lidar player, a better pick compared to Velodyne? See our dashboard Velodyne Vs. Now although the longer-term impacts of the governance issue is hard to gauge, the prospects for Velodyne’s business look good, and with the recent correction, the stock looks like a relatively cheap play on the growth of autonomous driving tech. Secondly, there have been governance-related concerns, after the Chairman of the Board, who was the company’s founder, and is apparently its largest shareholder, was replaced in February, following misconduct investigations relating to board and company processes. Firstly, the company’s guidance for 2021, issued in early May, was lighter than expected, with sales projected to stand at between $77 million and $94 million, well below the $150 million Velodyne projected when it went public last year. The sell-off has been driven broadly by two factors. Velodyne Lidar (NASDAQ: VLDR), a company that produces lidar sensors that are primarily used in autonomous vehicles, has seen its stock decline by about 25% over the last month and by roughly 55% year-to-date.
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