Gentherm (NASDAQ:THRM) vs. XOS (NASDAQ:XOS) Critical Comparison

XOS (NASDAQ:XOS) and Gentherm (NASDAQ:THRM) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

12.9% of XOS shares are held by institutional investors. Comparatively, 97.1% of Gentherm shares are held by institutional investors. 39.5% of XOS shares are held by insiders. Comparatively, 1.9% of Gentherm shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares XOS and Gentherm”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$62.86 million	0.44	-$75.84 million	($6.68)	-0.51
Gentherm	$1.46 billion	0.58	$40.34 million	$2.07	13.24

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

Analyst Recommendations

This is a breakdown of recent recommendations for XOS and Gentherm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	0	3	2	1	2.67
Gentherm	0	2	1	0	2.33

XOS currently has a consensus price target of $10.25, indicating a potential upside of 197.97%. Gentherm has a consensus price target of $51.67, indicating a potential upside of 88.50%. Given XOS’s stronger consensus rating and higher probable upside, equities analysts plainly believe XOS is more favorable than Gentherm.

Volatility and Risk

XOS has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XOS	-71.59%	-80.70%	-38.09%
Gentherm	4.46%	11.43%	5.82%

Summary

Gentherm beats XOS 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 Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.