American Axle & Manufacturing (NYSE:AXL) versus XOS (NASDAQ:XOS) Critical Comparison

American Axle & Manufacturing (NYSE:AXLGet Free Report) and XOS (NASDAQ:XOSGet Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares American Axle & Manufacturing and XOS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Axle & Manufacturing 0.99% 8.88% 0.87%
XOS -225.43% -80.67% -49.94%

Valuation and Earnings

This table compares American Axle & Manufacturing and XOS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Axle & Manufacturing $5.80 billion 0.18 $64.30 million $0.48 18.27
XOS $36.38 million 1.73 -$73.32 million ($0.44) -0.84

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Axle & Manufacturing and XOS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle & Manufacturing 0 4 1 0 2.20
XOS 0 2 2 0 2.50

American Axle & Manufacturing presently has a consensus target price of $10.20, indicating a potential upside of 16.31%. XOS has a consensus target price of $1.65, indicating a potential upside of 345.83%. Given XOS’s stronger consensus rating and higher possible upside, analysts plainly believe XOS is more favorable than American Axle & Manufacturing.

Risk and Volatility

American Axle & Manufacturing has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, XOS has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Institutional and Insider Ownership

92.2% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 12.1% of XOS shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by company insiders. Comparatively, 53.1% of XOS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

American Axle & Manufacturing beats XOS on 9 of the 14 factors compared between the two stocks.

About American Axle & Manufacturing

(Get Free Report)

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. It operates through Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides range of products, such as engine, transmission, driveline, and safety-critical components for traditional internal combustion engine and electric vehicle architectures including light vehicles, commercial vehicles, and off-highway vehicles, as well as products for industrial markets. It operates across Brazil, China, Czech Republic, England, France, Germany, India, Japan, Luxembourg, Mexico, Poland, Romina, Scotland, South Korea, Spain, Sweden, Thailand, and United States of America. The company was founded in 1994 and is headquartered in Detroit, 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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