Critical Review: XOS (NASDAQ:XOSWW) & urban-gro (NASDAQ:UGRO)

urban-gro (NASDAQ:UGRO) and XOS (NASDAQ:XOSWW) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for urban-gro and XOS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
urban-gro	0	0	2	0	3.00
XOS	0	0	0	0	N/A

urban-gro currently has a consensus target price of $7.13, suggesting a potential upside of 302.54%. Given urban-gro’s higher possible upside, equities analysts clearly believe urban-gro is more favorable than XOS.

Institutional & Insider Ownership

20.6% of urban-gro shares are owned by institutional investors. 22.2% of urban-gro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares urban-gro and XOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
urban-gro	-26.11%	-61.92%	-25.23%
XOS	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
urban-gro	$71.54 million	0.30	-$18.68 million	($1.67)	-1.06
XOS	$44.52 million	N/A	N/A	N/A	N/A

XOS has lower revenue, but higher earnings than urban-gro.

Summary

urban-gro beats XOS on 5 of the 8 factors compared between the two stocks.

About urban-gro

urban-gro, Inc. engages in the designing, engineering, building, and integrating complex environmental equipment systems for indoor controlled environment agriculture (CEA) cultivation and retail facilities in the United States, Canada, and Europe. The company provides architectural design, engineering, and construction services comprising pre-construction, cultivation space programming (CSP), architectural and interior design, engineering, integrated cultivation design, owner's representative/construction management, and general contracting services; and maintenance, training, and support services. It also offers facility and equipment commissioning services; gro-care crop and asset protection services, including training services, equipment maintenance services, asset protection program, and an interactive online operating support system for gro-care and client document delivery and project management; and property condition assessment services. In addition, the company provides integrated equipment systems solutions, such as design, source, and integration of complex environmental equipment systems comprising heating, ventilation, and air conditioning solutions, as well as environmental control, fertigation, irrigation distribution, water treatment, and wastewater reclamation systems; and commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, microbial mitigation, and odor reduction systems. Further, it offers value-Added Reselling (VAR) of cultivation equipment systems; and strategic vendor relationships with premier manufacturers. It primarily markets and sells its solutions to clients in the CEA that includes operators and facilitators in the cannabis and produce markets; and commercial sectors comprising food and beverage consumer packaged goods companies, healthcare, higher education, and hospitality. urban-gro, Inc. was founded in 2014 and is based in Lafayette, Colorado.

About XOS

Xos, Inc. designs, manufactures, and sells battery-electric commercial vehicles. It also offers a range of services to facilitate the transition of fleets to electric vehicles, including charging infrastructure, vehicle maintenance, financing, and service. The company was founded in 2020 and is headquartered in Los Angeles, California.