The .xz file format is a LZMA2 based compression format. There are no archiving capabilities so .xz files only hold one compressed file.
The .xz file format is a container format for compressed streams, normally using LZMA2. There are no archiving capabilities, that is, the .xz format can hold only a single file just like the .gz and .bz2 file formats used by gzip and bzip2, respectively.