Ouster vs. Innoviz: Which LiDAR Powerhouse is a Safer Bet?

LiDAR technology holds strong long-term potential in the automotive sector, with initial adoption focused on premium vehicles and robotaxis. Its rising popularity is driven by its ability to provide accurate 3D mapping and object detection, complementing cameras and radar in advanced driver-assistance systems (ADAS) and autonomous driving applications. In this scenario, both Ouster, Inc. OUST and Innoviz Technologies INVZ are developing cutting-edge sensing solutions to position themselves as key industry players.

Ouster highlights its digital LiDAR sensors as among the highest-performing and most cost-effective in the market, with a pivotal role in the global shift toward autonomy. Meanwhile, Innoviz continues to make progress with its existing L3 and L4 programs, given the acceleration of robotaxi deployments across the globe. It has also introduced InnovizSMART, which brings its auto-grade LiDAR to industrial applications.

Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.

The Case for OUST

Ouster is well-positioned to benefit from rising LiDAR adoption across automotive, industrial, robotics and smart infrastructure markets. Its 2023 merger with Velodyne expanded its digital LiDAR product lineup, broadened its customer base and set a goal of more than $75 million in annual cost synergies. Management is emphasizing software-attached solutions, product upgrades and a push toward profitability.

The company is shifting from hardware-focused sales to software-driven offerings like its Gemini perception platform and BlueCity analytics suite, aiming to build recurring revenue streams. Its upcoming Chronos chip is designed to lower costs and improve performance, supporting adoption across a $19 billion addressable market by 2030. Ouster targets 30-50% annual revenue growth and gross margins of 35-40%, supported by major deals across all verticals, including its largest software-attached contract in Europe and expanding partnerships such as with LASE PeCo.

Despite steady revenue growth and gross margin gains, Ouster remains unprofitable and expects continued cash burn through at least 2026. Manufacturing concentration and U.S. tariffs add risk, but with $171 million in cash and no debt, its balance sheet remains solid.

OUST shares have gained 170% year to date.

Factors to Consider for INVZ

Innoviz aims to be the world’s premier large-scale supplier of best-in-class LiDAR solutions for autonomous driving and beyond as it ramps production and continues to win new customers. The company’s strategic partnerships with industry leaders such as BMW, Volkswagen, and Mobileye strengthen its credibility and offer a tangible pathway to high-volume production.

It remains focused on ramping up InnovizTwo, developing the next-generation InnovizThree and securing additional design wins in the automotive and non-automotive segments.

It targets revenues to grow to $50 million to $60 million in 2025, banking on new programs (plans to add one to three), NREs and sales of LiDAR. 
Yet, Innoviz remains unprofitable and expects continued cash burn. However, it remains committed to managing expenses efficiently to improve the cash burn rate on an annualized basis.

Innoviz stated that its NRE payment plans are an important part of its financial model and help it offset its spending considerably. With the expansion in its NRE payment plan and 2026 production ramp-up, it has launched an at-the-market or ATM program of $75 million. It intends to use the net proceeds from the ATM for general business purposes, including activities such as R&D operations and production efforts.

INVZ shares have gained 17.2% year to date.

Estimates for OUST and INVZ

The Zacks Consensus Estimate for OUST’s 2025 revenues and EPS implies a year-over-year increase of 24% and 29.8%, respectively. There has been no change in estimates in the past 60 days. OUST has a Growth Score of B.

On the other hand, the Zacks Consensus Estimate for INVZ’s 2025 revenues and EPS implies a year-over-year increase of 189.8% and 44.7%, respectively. There has been no change in estimates in the past 60 days. INVZ has a Growth Score of B.

Are OUST and INVZ Shares Expensive?

Ouster is trading at a forward 12-month price-to-sales multiple of 9.73, above its median of 3.22 over the last three years. Innoviz is trading at a forward 12-month price-to-sales multiple of 2.63, above its median of 2.4 over the last three years.

Conclusion

With a broad product lineup, Ouster is well-positioned to strengthen margins and increase its potential for recurring revenues, benefiting from the long-term growth of LiDAR adoption. If it can sustain its growth trajectory, manage costs effectively and execute its transition to software-led solutions, Ouster could emerge as a key enabler in the evolution of automation and intelligent technologies
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Innoviz Technologies stands tall in the automotive LiDAR and perception systems market, a sector supporting ADAS and fully autonomous driving.  The company noted that, over the past few months, there has been a tremendous acceleration of plans to deploy Level 4 robotaxis around the world. Innioviz, offering a mature, scalable, cost-effective LiDAR, is well poised to support the acceleration.

Though OUST and INVZ carry a Zacks Rank #3 (Hold) each, INVZ appears as a safer bet.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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