Critical Review: XOS (NASDAQ:XOS) and Canoo (NYSE:GOEV)

XOS (NASDAQ:XOS – Get Rating) and Canoo (NYSE:GOEV – Get Rating) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

12.1% of XOS shares are owned by institutional investors. Comparatively, 52.5% of Canoo shares are owned by institutional investors. 54.6% of XOS shares are owned by company insiders. Comparatively, 18.5% of Canoo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

XOS has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Canoo has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for XOS and Canoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	0	2	2	0	2.50
Canoo	0	1	3	0	2.75

XOS presently has a consensus price target of $1.65, indicating a potential upside of 333.07%. Canoo has a consensus price target of $5.88, indicating a potential upside of 776.73%. Given Canoo’s stronger consensus rating and higher probable upside, analysts plainly believe Canoo is more favorable than XOS.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XOS	-225.43%	-80.67%	-49.94%
Canoo	N/A	-192.55%	-95.34%

Valuation & Earnings

This table compares XOS and Canoo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$36.38 million	1.77	-$73.32 million	($0.44)	-0.87
Canoo	$2.55 million	125.47	-$487.69 million	($1.58)	-0.42

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

About XOS

(Get Rating)

Xos, Inc., a mobility solutions company, manufactures and sells battery-electric commercial vehicles. It offers a range of services to facilitate the transition of fleets to electric vehicles, including charging infrastructure, vehicle maintenance, financing, and service. The company was founded in 2020 and is headquartered in Los Angeles, California.

About Canoo

(Get Rating)

Canoo Inc., a mobility technology company, designs, engineers, develops, and manufactures electric vehicles for commercial and consumer markets in the United States. The company offers lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups. It also provides multi-purpose platform architecture is a self-contained, fully functional rolling chassis design to support various range of vehicle weight and ride profiles. The company serves to small businesses, independent contractors, tradespeople, utilities, and service technicians. Canoo Inc. was founded in 2017 and is headquartered in Torrance, California.