PACCAR (NASDAQ:PCAR) & XOS (NASDAQ:XOS) Critical Review

XOS (NASDAQ:XOS) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Risk & Volatility

XOS has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XOS	-91.56%	-147.93%	-48.78%
PACCAR	9.88%	18.25%	7.69%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for XOS and PACCAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	0	2	2	1	2.80
PACCAR	0	8	4	2	2.57

XOS currently has a consensus price target of $9.00, suggesting a potential upside of 223.74%. PACCAR has a consensus price target of $107.68, suggesting a potential upside of 8.68%. Given XOS’s stronger consensus rating and higher probable upside, equities analysts plainly believe XOS is more favorable than PACCAR.

Valuation & Earnings

This table compares XOS and PACCAR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$51.54 million	0.47	-$50.16 million	($5.85)	-0.48
PACCAR	$33.66 billion	1.55	$4.16 billion	$5.84	16.97

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

Institutional and Insider Ownership

12.9% of XOS shares are owned by institutional investors. Comparatively, 64.9% of PACCAR shares are owned by institutional investors. 20.9% of XOS shares are owned by company insiders. Comparatively, 2.0% of PACCAR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PACCAR beats XOS on 11 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 PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.