Contrasting XOS (NASDAQ:XOS) & Valmont Industries (NYSE:VMI)

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

Volatility & Risk

XOS has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Valmont Industries has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

12.9% of XOS shares are held by institutional investors. Comparatively, 87.8% of Valmont Industries shares are held by institutional investors. 20.7% of XOS shares are held by insiders. Comparatively, 1.4% of Valmont Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for XOS and Valmont Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOS	1	0	1	1	2.67
Valmont Industries	0	2	4	0	2.67

XOS currently has a consensus target price of $7.00, indicating a potential upside of 159.26%. Valmont Industries has a consensus target price of $587.00, indicating a potential upside of 19.02%. Given XOS’s higher probable upside, equities analysts plainly believe XOS is more favorable than Valmont Industries.

Valuation & Earnings

This table compares XOS and Valmont Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$45.99 million	0.81	-$25.32 million	($1.98)	-1.36
Valmont Industries	$4.10 billion	2.32	$334.78 million	$25.68	19.21

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

Profitability

This table compares XOS and Valmont Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOS	-39.13%	-86.90%	-29.88%
Valmont Industries	11.70%	25.57%	12.44%

Summary

Valmont Industries beats XOS on 10 of the 14 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 Valmont Industries

Valmont Industries, Inc. operates as manufacturer of products and services for infrastructure and agriculture markets in the United States, Australia, Brazil, and internationally. It operates through two segments, Infrastructure and Agriculture. The company manufactures and distributes steel, pre-stressed concrete, composite structures for electrical transmission, substation, and distribution applications; and designs, engineers, and manufactures metal, steel, wood, aluminum, and composite poles and structures for lighting and transportation applications. It also offers galvanizing, anodizing, painting, and powder coating services for paint products; towers, small cell structures, camouflage concealment solutions, passive intermodulation mitigation equipment, and components for wireless communication markets; and solar single-axis tracker product, an integrated system of steel structures, electric motors, and electronic controllers, as well as provides coatings services to preserve metal products. In addition, the company manufactures center pivot components and linear irrigation equipment for the agricultural markets, such as parts and tubular products for industrial customers; advanced technology solutions for agricultural sector; mechanical irrigation equipment and service parts under the Valley brand name. It serves municipalities and government entities, commercial lighting fixtures manufacturing companies, contractors, telecommunications and utility companies, and farmers, as well as the general manufacturing sector. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.