Critical Analysis: XOS (NASDAQ:XOS) and Dorman Products (NASDAQ:DORM)

XOS (NASDAQ:XOS – Get Rating) and Dorman Products (NASDAQ:DORM – Get Rating) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

XOS has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Dorman Products has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for XOS and Dorman Products, as provided by MarketBeat.

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

XOS currently has a consensus target price of $1.65, indicating a potential upside of 344.38%. Dorman Products has a consensus target price of $111.67, indicating a potential upside of 31.95%. Given XOS’s higher probable upside, equities research analysts plainly believe XOS is more favorable than Dorman Products.

Valuation and Earnings

This table compares XOS and Dorman Products’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$36.38 million	1.74	-$73.32 million	($0.44)	-0.84
Dorman Products	$1.73 billion	1.54	$121.55 million	$2.92	28.98

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

Profitability

This table compares XOS and Dorman Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOS	-225.43%	-80.67%	-49.94%
Dorman Products	5.12%	12.38%	6.22%

Insider and Institutional Ownership

12.1% of XOS shares are held by institutional investors. Comparatively, 75.2% of Dorman Products shares are held by institutional investors. 54.6% of XOS shares are held by company insiders. Comparatively, 10.3% of Dorman Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Dorman Products beats XOS on 10 of the 14 factors compared between 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 Dorman Products

(Get Rating)

Dorman Products, Inc. engages in the supply of automotive replacement and upgrade parts for the motor vehicle aftermarket industry. Its products include automotive body, steering and suspension, undercar, underhood, hardware and accessories, and heavy-duty components. The company was founded by Steven L. Berman and Richard N. Berman on October 16, 1978 and is headquartered in Colmar, PA.