Contrasting Aptiv (NYSE:APTV) and XOS (NASDAQ:XOS)

Aptiv (NYSE:APTV) and XOS (NASDAQ:XOS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Aptiv has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, XOS has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aptiv	14.87%	13.21%	6.12%
XOS	-117.98%	-104.27%	-52.39%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$20.05 billion	0.93	$2.94 billion	$10.61	6.48
XOS	$44.52 million	1.09	-$75.84 million	($10.74)	-0.58

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Aptiv and XOS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	2	2	10	0	2.57
XOS	0	0	3	0	3.00

Aptiv presently has a consensus price target of $98.71, indicating a potential upside of 43.61%. XOS has a consensus price target of $20.63, indicating a potential upside of 233.74%. Given XOS’s stronger consensus rating and higher possible upside, analysts clearly believe XOS is more favorable than Aptiv.

Insider & Institutional Ownership

94.2% of Aptiv shares are held by institutional investors. Comparatively, 12.9% of XOS shares are held by institutional investors. 0.3% of Aptiv shares are held by insiders. Comparatively, 53.1% of XOS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Aptiv beats XOS on 9 of the 14 factors compared between the two stocks.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

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.