REV Group (NYSE:REVG) versus PowerFleet (NASDAQ:AIOT) Head to Head Review

REV Group (NYSE:REVG) and PowerFleet (NASDAQ:AIOT) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Earnings and Valuation

This table compares REV Group and PowerFleet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.46 billion	1.27	$95.20 million	$1.91	33.46
PowerFleet	$443.78 million	1.19	-$20.55 million	($0.16)	-24.50

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

Profitability

This table compares REV Group and PowerFleet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REV Group	3.86%	31.67%	10.30%
PowerFleet	-4.63%	-1.33%	-0.66%

Risk & Volatility

REV Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

73.4% of PowerFleet shares are owned by institutional investors. 1.7% of REV Group shares are owned by company insiders. Comparatively, 5.9% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for REV Group and PowerFleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	0	2	1	1	2.75
PowerFleet	1	1	3	0	2.40

REV Group presently has a consensus target price of $55.67, suggesting a potential downside of 12.88%. PowerFleet has a consensus target price of $9.67, suggesting a potential upside of 146.60%. Given PowerFleet’s higher probable upside, analysts clearly believe PowerFleet is more favorable than REV Group.

Summary

REV Group beats PowerFleet on 10 of the 15 factors compared between the two stocks.

About REV Group

REV Group, Inc., together with its subsidiaries, designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, Spartan Fire Chassis, and Ladder Tower brand names; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brand names. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Eldorado National (California), Magellan, Capacity, and LayMor brand names. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade RV, Midwest Automotive Designs, and Lance Camper brands; and produces a range of custom molded fiberglass products. The company sells its products to municipalities, government agencies, private contractors, consumers, and industrial and commercial end users through its direct sales force or dealer network. The company was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. REV Group, Inc. was incorporated in 2008 and is based in Brookfield, Wisconsin.

About PowerFleet

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.