Head to Head Review: Lear (NYSE:LEA) vs. XOS (NASDAQ:XOS)

Lear (NYSE:LEAGet Free Report) and XOS (NASDAQ:XOSGet Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Lear 2.44% 14.09% 4.86%
XOS -235.33% -108.67% -59.44%

Earnings and Valuation

This table compares Lear and XOS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lear $23.47 billion 0.33 $327.70 million $9.68 13.92
XOS $36.38 million 1.31 -$73.32 million ($13.81) -0.58

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

Risk and Volatility

Lear has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, XOS has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Insider & Institutional Ownership

97.0% of Lear shares are held by institutional investors. Comparatively, 12.1% of XOS shares are held by institutional investors. 0.8% of Lear shares are held by insiders. Comparatively, 53.1% of XOS shares are held by 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lear and XOS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lear 0 4 5 0 2.56
XOS 0 2 2 0 2.50

Lear presently has a consensus price target of $160.22, suggesting a potential upside of 18.91%. XOS has a consensus price target of $22.10, suggesting a potential upside of 175.56%. Given XOS’s higher possible upside, analysts clearly believe XOS is more favorable than Lear.

Summary

Lear beats XOS on 10 of the 14 factors compared between the two stocks.

About Lear

(Get Free Report)

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About XOS

(Get Free Report)

Xos, Inc. designs, manufactures, and sells battery-electric commercial vehicles. It also 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.

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