Contrasting XOS (NASDAQ:XOS) & Traton (OTCMKTS:TRATF)

Traton (OTCMKTS:TRATF) and XOS (NASDAQ:XOS) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

12.9% of XOS shares are owned by institutional investors. 53.1% of XOS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Traton 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
Traton	N/A	N/A	N/A	N/A	N/A
XOS	$63.77 million	0.56	-$75.84 million	($10.74)	-0.42

Traton has higher earnings, but lower revenue than XOS.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traton	0	0	0	0	N/A
XOS	0	1	2	1	3.00

XOS has a consensus target price of $15.00, indicating a potential upside of 229.67%. Given XOS’s higher probable upside, analysts clearly believe XOS is more favorable than Traton.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traton	N/A	N/A	N/A
XOS	-76.21%	-84.60%	-41.69%

Summary

XOS beats Traton on 6 of the 9 factors compared between the two stocks.

About Traton

Traton SE manufactures and sells commercial vehicles worldwide. It operates in Industrial Business and Financial Services segments. The company offers light- to heavy-duty trucks for distributors, long-distance vans, and construction vehicles, as well as city buses, and intercity and travel coaches; bus chassis, commercial trucks, and diesel engines; and school and commercial buses under the IC Bus brand. It also provides a cloud-based platform for the transport and logistics industry under the RIO brand; and after-sales services and custom digital solutions. The company offers its products and services under the MAN, Scania, Navistar, and Volkswagen Truck & Bus brands. In addition, it provides customers financing solutions, such as loans and leases. The company was founded in 2015 and is headquartered in Munich, Germany. Traton SE is a subsidiary of Volkswagen Finance Luxemburg S.A.

About XOS

Xos, Inc. designs, manufactures, and sells battery-electric commercial vehicles. The company provides class 5-6 medium duty rolling chassis, such as commercial stepvans and armored trucks; class 7-8 heavy duty chassis; and Xos product development. It offers Xos provides mix-use powertrain solutions for off-highway, industrial and other commercial equipment, and specialty vehicles, such as school buses, medical and dental clinics, blood donation vehicles, and mobile command vehicles. In addition, the company offers energy solutions, a comprehensive charging infrastructure business that offers mobile and stationary multi-application chargers, mobile energy storage, and turnkey energy infrastructure services to accelerate client transitions to electric fleets; Xos Hub, a rapid-deployment mobile charger designed to expedite fleet transitions to electric vehicles; and Xosphere, a platform that interconnects vehicle, maintenance, charging, and service data to improve overall customer experience. Further, it offers X-Pack, a proprietary battery pack technology for last-mile commercial use cases; X-Platform foundation of Xos vehicle products; and vehicle control software, which include powertrain controls, body controls, and instrument cluster and infotainment. Xos, Inc. was founded in 2020 and is headquartered in Los Angeles, California.