ECD Automotive Design (NASDAQ:ECDA – Get Free Report) and XOS (NASDAQ:XOS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Volatility & Risk
ECD Automotive Design has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, XOS has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Profitability
This table compares ECD Automotive Design and XOS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ECD Automotive Design | -35.38% | N/A | -49.53% |
| XOS | -101.36% | -117.14% | -45.90% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ECD Automotive Design | $25.17 million | 0.41 | -$10.77 million | ($0.28) | -1.04 |
| XOS | $55.96 million | 0.45 | -$50.16 million | ($6.17) | -0.49 |
ECD Automotive Design has higher earnings, but lower revenue 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.
Institutional & Insider Ownership
94.8% of ECD Automotive Design shares are held by institutional investors. Comparatively, 12.9% of XOS shares are held by institutional investors. 77.3% of ECD Automotive Design shares are held by insiders. Comparatively, 20.9% of XOS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ECD Automotive Design and XOS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ECD Automotive Design | 0 | 0 | 0 | 0 | 0.00 |
| XOS | 0 | 3 | 2 | 1 | 2.67 |
XOS has a consensus price target of $8.75, suggesting a potential upside of 187.36%. Given XOS’s stronger consensus rating and higher probable upside, 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 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.
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.
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