Financial Analysis: XOS (NASDAQ:XOS) and AYRO (NASDAQ:AYRO)

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

Profitability

This table compares XOS and AYRO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOS	-91.56%	-147.93%	-48.78%
AYRO	N/A	-1,213.64%	-88.32%

Analyst Ratings

This is a summary of recent ratings and price targets for XOS and AYRO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	0	2	2	1	2.80
AYRO	0	0	0	0	0.00

XOS currently has a consensus target price of $9.00, suggesting a potential upside of 220.28%. Given XOS’s stronger consensus rating and higher possible upside, equities analysts clearly believe XOS is more favorable than AYRO.

Volatility & Risk

XOS has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, AYRO has a beta of 3.34, meaning that its share price is 234% more volatile than the S&P 500.

Valuation & Earnings

This table compares XOS and AYRO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$55.96 million	0.44	-$50.16 million	($5.85)	-0.48
AYRO	$5,426.00	653.11	-$1.75 million	($4.30)	-1.22

AYRO has lower revenue, but higher earnings than XOS. AYRO is trading at a lower price-to-earnings ratio than XOS, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

12.9% of XOS shares are owned by institutional investors. Comparatively, 5.7% of AYRO shares are owned by institutional investors. 20.9% of XOS shares are owned by company insiders. Comparatively, 2.0% of AYRO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

XOS beats AYRO on 10 of the 15 factors compared between the two stocks.

About XOS

Xos, Inc. is an electric mobility company engaged in manufacturing electric trucks. The firm designs and develops fully electric battery mobility systems specifically for commercial fleets. The company was founded by Dakota Semler and Giordano Sordoni on July 29, 2020 and is headquartered in Los Angeles, CA.

About AYRO

Ayro, Inc. designs, manufactures, and sells electric vehicles for closed campus mobility, urban and community transport, local on-demand and last mile delivery, and government use in the United States. It provides four-wheeled purpose-built electric vehicles for universities, business and medical campuses, last mile delivery services, and food service providers. The company also offers vehicles as an alternative to internal combustion engine vehicles for light duty uses, including low-speed logistics, maintenance, and cargo services; and designs and develops AYRO Vanish fleet of low speed electric vehicle. The company was formerly known as AEV Technologies, Inc. Ayro, Inc. was founded in 2017 and is headquartered in Round Rock, Texas.