Vuzix Story

<div class='circular--portrait' style='background:#8B008B;color: #ffffff;font-size:3em;'>VUZ</div>
VUZI -- USA Stock  

USD 4.44  0.23  5.46%

It looks like Apple will continue to recover much faster as its share price surged up 5.15% today to Vuzix's 17.4387%. While some of us are excited about technology space, we will evaluate how stable are Vuzix and Apple fundamentals. We are going to examine some of the competitive aspects of both Vuzix and Apple.
Published over a month ago
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Are Apple (NASDAQ:AAPL) stockholders switching to Vuzix (NASDAQ:VUZI)?
By analyzing existing basic indicators between Vuzix and Apple, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Apple with a short position in Vuzix. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Vuzix has an asset utilization ratio of 39.26 percent. This implies that the company is making $0.39 for each dollar of assets. An increasing asset utilization means that Vuzix is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Vuzix or Apple is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Vuzix's Liquidity

Vuzix financial leverage refers to using borrowed capital as a funding source to finance Vuzix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vuzix financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Vuzix's total debt and its cash.

Correlation Between Vuzix and Apple Inc

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Vuzix together with similar or unrelated positions with a negative correlation. For example, you can also add Apple to your portfolio. If Apple is not perfectly correlated to Vuzix it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Vuzix for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between VUZI and AAPL for more information.

Note

Are you currently holding both Vuzix and Apple in your portfolio? Please note if you are using this as a pair-trade strategy between Vuzix and Apple, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by Harned Timothy Heydenreich of 7500 shares of Vuzix subject to Rule 16b-3

Legal trades by Vuzix insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Vuzix insider trading alert for grant of common stock by Harned Timothy Heydenreich, the corporate stakeholder, on 29th of September 2020. This event was filed by Vuzix Corp with SEC on 2020-09-29. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Vuzix revenue. Based on the latest financial disclosure, Vuzix reported 7.68 M of revenue. This is 99.81% lower than that of the Technology sector and 99.98% lower than that of the Consumer Electronics industry. The revenue for all United States stocks is 99.92% higher than that of Vuzix. As for Apple we see revenue of 273.86 B, which is much higher than that of the Consumer Electronics

AAPL
273.9 B
VUZI7.68 Million0.002763
Sector4.08 Billion1.47
AAPL273.86 Billion98.53

Our perspective of the current Vuzix rise

Mean deviation is down to 4.22. It may hint to a possible volatility drop. As of the 21st of August, Vuzix has the Coefficient Of Variation of 641.09, semi deviation of 4.07, and Risk Adjusted Performance of 0.2349. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Vuzix, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for Vuzix, which can be compared to its competition. Please validate Vuzix standard deviation, as well as the relationship between the value at risk and kurtosis to decide if Vuzix is priced more or less accurately, providing market reflects its prevalent price of 4.31 per share. Given that Vuzix has jensen alpha of 0.8621, we advise you to double-check Vuzix's current market performance to make sure the company can sustain itself at a future point.

While some firms under the consumer electronics industry are still a bit expensive, Vuzix may offer a potential longer-term growth to stockholders. To conclude, as of the 21st of August 2020, we see that Vuzix barely shadows the market. The company is undervalued with very low probability of distress within the next 24 months. However, our primary 30 days recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Vuzix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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