XOS (NASDAQ:XOS – Get Free Report) and ECD Automotive Design (NASDAQ:ECDA – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Institutional and Insider Ownership
12.9% of XOS shares are held by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are held by institutional investors. 20.9% of XOS shares are held by insiders. Comparatively, 77.3% of ECD Automotive Design shares are held by 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.
Profitability
This table compares XOS and ECD Automotive Design’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XOS | -101.36% | -117.14% | -45.90% |
| ECD Automotive Design | -35.38% | N/A | -49.53% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XOS | $55.96 million | 0.45 | -$50.16 million | ($6.17) | -0.49 |
| ECD Automotive Design | $25.17 million | 0.44 | -$10.77 million | ($0.28) | -1.11 |
ECD Automotive Design has lower revenue, but higher earnings than XOS. ECD Automotive Design is trading at a lower price-to-earnings ratio than XOS, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
XOS has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for XOS and ECD Automotive Design, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XOS | 0 | 3 | 2 | 1 | 2.67 |
| ECD Automotive Design | 0 | 0 | 0 | 0 | 0.00 |
XOS presently has a consensus target price of $8.75, suggesting a potential upside of 190.70%. Given XOS’s stronger consensus rating and higher possible upside, equities analysts clearly believe XOS is more favorable than ECD Automotive Design.
Summary
XOS beats ECD Automotive Design on 9 of the 15 factors compared between the two stocks.
About XOS
Xos, Inc. is an electric mobility company engaged in manufacturing electric trucks. The firm designs and develops fully electric battery mobility systems specifically for commercial fleets. The company was founded by Dakota Semler and Giordano Sordoni on July 29, 2020 and is headquartered in Los Angeles, CA.
About ECD Automotive Design
ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.
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