XOS (NASDAQ:XOS) & Garrett Motion (OTCMKTS:GTXMQ) Critical Survey

Posted by on Jun 25th, 2023

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

Earnings & Valuation

This table compares XOS and Garrett Motion’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XOS $36.38 million 1.48 -$73.32 million ($0.44) -0.72
Garrett Motion $3.25 billion 0.00 $313.00 million $3.86 N/A

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

Insider and Institutional Ownership

12.1% of XOS shares are held by institutional investors. Comparatively, 12.7% of Garrett Motion shares are held by institutional investors. 53.1% of XOS shares are held by company insiders. Comparatively, 0.9% of Garrett Motion 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for XOS and Garrett Motion, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XOS 0 2 2 0 2.50
Garrett Motion 0 0 0 0 N/A

XOS currently has a consensus price target of $1.65, indicating a potential upside of 423.81%.

Volatility and Risk

XOS has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Garrett Motion has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500.

Profitability

This table compares XOS and Garrett Motion’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%
Garrett Motion 6.65% -6.89% 6.44%

Summary

Garrett Motion beats XOS on 9 of the 11 factors compared between the two stocks.

About XOS

(Get Rating)

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.

About Garrett Motion

(Get Rating)

Garrett Motion, Inc. provides automobile technology. The firm engages in the designing, manufacturing and selling engineered turbocharger, electric-boosting technologies for light and commercial vehicle original equipment manufacturers. It offers light vehicle gasoline, light vehicle diesel and commercial vehicle turbochargers that enhance vehicle performance, fuel economy and drivability. The company was founded on March 14, 2018 and is headquartered in Rolle, Switzerland.

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