Analyzing REV Group (NYSE:REVG) & XOS (NASDAQ:XOS)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.46 billion	1.27	$95.20 million	$1.91	33.46
XOS	$45.99 million	0.71	-$25.32 million	($1.62)	-1.41

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

Institutional and Insider Ownership

12.9% of XOS shares are owned by institutional investors. 1.7% of REV Group shares are owned by company insiders. Comparatively, 20.7% of XOS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares REV Group and XOS’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%
XOS	-51.68%	-80.31%	-32.05%

Volatility and Risk

REV Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, XOS has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for REV Group and XOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	0	1	1	1	3.00
XOS	1	1	0	0	1.50

REV Group presently has a consensus target price of $55.00, suggesting a potential downside of 13.93%. Given REV Group’s stronger consensus rating and higher possible upside, research analysts clearly believe REV Group is more favorable than XOS.

Summary

REV Group beats XOS on 11 of the 14 factors compared between the two stocks.

About REV Group

REV Group, Inc. designs, manufactures and distributes specialty vehicles and related parts and services. Its products serve emergency response, recreation and commercial transportation markets, including fire apparatus, ambulances, motorhomes, travel trailers, school buses, transit buses and shuttle buses. The company sells vehicles under a range of established brands, including E-ONE and Ferrara in fire and emergency vehicles; Fleetwood RV, Holiday Rambler and Renegade in recreation vehicles; and Collins Bus and ENC in commercial buses.

About XOS

Xos, Inc. is a commercial electric vehicle company that designs and manufactures battery-electric vehicles for commercial and fleet applications. Its product portfolio has focused on medium- and heavy-duty vehicles, including step vans and other purpose-built platforms used for last-mile delivery, logistics, service, and other urban transportation needs. The company also provides related fleet solutions, including vehicle software and charging or energy-management tools intended to help commercial operators monitor vehicle performance, manage fleets, and support the transition from internal-combustion vehicles to electric transportation.