Critical Contrast: Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) & REV Group (NYSE:REVG)

REV Group (NYSE:REVG) and Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) are both mid-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Valuation & Earnings

This table compares REV Group and Grupo Aeroportuario del Centro Norte”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.40 billion	1.09	$257.60 million	$2.12	25.21
Grupo Aeroportuario del Centro Norte	$826.93 million	5.23	$237.12 million	$5.40	18.83

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

Analyst Ratings

This is a breakdown of current ratings for REV Group and Grupo Aeroportuario del Centro Norte, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	1	1	3	1	2.67
Grupo Aeroportuario del Centro Norte	1	4	2	0	2.14

REV Group presently has a consensus target price of $56.50, indicating a potential upside of 5.73%. Grupo Aeroportuario del Centro Norte has a consensus target price of $92.17, indicating a potential downside of 9.35%. Given REV Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe REV Group is more favorable than Grupo Aeroportuario del Centro Norte.

Profitability

This table compares REV Group and Grupo Aeroportuario del Centro Norte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REV Group	4.51%	27.25%	8.95%
Grupo Aeroportuario del Centro Norte	33.00%	52.90%	19.28%

Risk and Volatility

REV Group has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Grupo Aeroportuario del Centro Norte has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

9.5% of Grupo Aeroportuario del Centro Norte shares are owned by institutional investors. 1.7% of REV Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Grupo Aeroportuario del Centro Norte pays an annual dividend of $2.11 per share and has a dividend yield of 2.1%. REV Group pays out 11.3% of its earnings in the form of a dividend. Grupo Aeroportuario del Centro Norte pays out 39.1% 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. REV Group has raised its dividend for 1 consecutive years.

Summary

REV Group beats Grupo Aeroportuario del Centro Norte on 11 of the 18 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 Grupo Aeroportuario del Centro Norte

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and maintain airports in Mexico. The company operates 13 international airports in Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas cities. It also operates the NH Collection Hotel in Terminal 2 of the Mexico City International Airport, and a hotel under the Hilton Garden Inn name at the Monterrey International Airport. In addition, the company provides aeronautical services, which include passenger, aircraft landing and parking, boarding and unloading, passenger walkway, and airport security services. Further, it offers complementary services that comprise leasing of space to airlines, cargo handling, baggage-screening, permanent and non-permanent ground transportation, and access rights services; non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, and other commercial tenants, as well as maintaining of parking facilities and advertising; and diversification services, which consists of operation and lease of the industrial park and real estate services, as well as hotel and air cargo logistics services. Additionally, the company provides construction services. It has a strategic alliance with VYNMSA Desarrollo Inmobiliario, S.A. de C.V. to build and operate an industrial park at the Monterrey airport. The company was founded in 1998 and is headquartered in Mexico City, Mexico.