Critical Analysis: Lotus Technology (NASDAQ:LOT) & XOS (NASDAQ:XOS)

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

Valuation and Earnings

This table compares Lotus Technology and XOS”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lotus Technology $924.35 million 0.84 -$1.10 billion ($1.24) -0.92
XOS $55.96 million 0.44 -$50.16 million ($4.31) -0.50

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

Profitability

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

Net Margins Return on Equity Return on Assets
Lotus Technology -130.45% N/A -37.78%
XOS -66.13% -128.19% -40.62%

Volatility and Risk

Lotus Technology has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, XOS has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Lotus Technology and XOS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lotus Technology 1 0 0 0 1.00
XOS 1 1 1 0 2.00

XOS has a consensus target price of $7.00, suggesting a potential upside of 222.58%. Given XOS’s stronger consensus rating and higher possible upside, analysts clearly believe XOS is more favorable than Lotus Technology.

Institutional and Insider Ownership

63.4% of Lotus Technology shares are held by institutional investors. Comparatively, 12.9% of XOS shares are held by institutional investors. 0.2% of Lotus Technology shares are held by company insiders. Comparatively, 20.9% of XOS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

XOS beats Lotus Technology on 8 of the 14 factors compared between the two stocks.

About Lotus Technology

(Get Free Report)

Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.

About XOS

(Get Free Report)

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.

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