Rev Group (NYSE:REVG) and PEUGEOT SA/ADR (OTCMKTS:PUGOY) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Rev Group and PEUGEOT SA/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
0.1% of PEUGEOT SA/ADR shares are held by institutional investors. 3.7% of Rev Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Rev Group has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500. Comparatively, PEUGEOT SA/ADR has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Rev Group and PEUGEOT SA/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rev Group currently has a consensus target price of $10.89, suggesting a potential upside of 2.24%. Given Rev Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rev Group is more favorable than PEUGEOT SA/ADR.
Earnings and Valuation
This table compares Rev Group and PEUGEOT SA/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rev Group||$2.38 billion||0.28||$13.00 million||$1.03||10.34|
|PEUGEOT SA/ADR||$87.43 billion||0.27||$3.34 billion||$3.55||7.48|
PEUGEOT SA/ADR has higher revenue and earnings than Rev Group. PEUGEOT SA/ADR is trading at a lower price-to-earnings ratio than Rev Group, indicating that it is currently the more affordable of the two stocks.
Rev Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. PEUGEOT SA/ADR pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Rev Group pays out 19.4% of its earnings in the form of a dividend. PEUGEOT SA/ADR pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PEUGEOT SA/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
Rev Group beats PEUGEOT SA/ADR on 9 of the 16 factors compared between the two stocks.
About Rev Group
REV Group, Inc. designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, Latin America, the Caribbean, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment offers a range of fire apparatus and ambulance products for municipalities and private contractors. This segment sells its products primarily under the Emergency One, Kovatch Mobile Equipment and Ferrara brands and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Marque, McCoy Miller, Road Rescue, Wheeled Coach, and Frontline brands. The Commercial segment provides transit and shuttle buses, school buses, terminal trucks, cut-away buses, mobility vans, industrial sweepers, and other specialty vehicles. The segment sells its products directly, as well as through dealers primarily under the Collins Bus, Goshen Coach, ENC, ElDorado National, Krystal Coach, Federal Coach, Champion, and World Trans brands to governmental bodies, including municipalities, such as fire departments, school districts, hospitals, and the U.S. federal government, as well as transit and shuttle bus markets. The Recreation segment offers motorized recreational vehicles and luxury buses. This segment sells its vehicles under the American Coach, Fleetwood RV, Monaco Coach, Holiday Rambler, Renegade, Midwest, and Lance brands through dealers. The company also provides aftermarket parts and services. REV Group, Inc. was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. The company is headquartered in Milwaukee, Wisconsin.
About PEUGEOT SA/ADR
Peugeot SA manufactures automobiles and light commercial vehicles. It produces motorbikes, scooters, hydraulic engines, vehicle components and provides after sales service. The Peugeot operates through the following business segments: Peugeot Citroen DS Automotive, Opel Vauxhall Automotive, Automotive Equipment and Finance. The Peugeot Citroen DS Automotive Segment engages in the designing, manufacturing and selling of cars and light commercial vehicles under the Peugeot and Citroen brands. The Opel Vauxhall Automotive segment engages in covering the design, manufacture and sale of passenger cars and light commercial vehicles under the Opel and Vauxhall brands. The Automotive Equipment segment comprises of interior systems, automotive seating, automotive exteriors and emissions control technologies. The Finance segment provides retail and wholesale financing to Peugeot and Citroen customers and dealers. Peugeot was founded in 1896 and is headquartered in Paris, France.
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