Rev Group (NYSE:REVG) and Workhorse Group (NASDAQ:WKHS) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Risk and Volatility

Rev Group has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Profitability

This table compares Rev Group and Workhorse Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rev Group 2.40% 13.12% 5.65%
Workhorse Group -499.90% -1,564.64% -244.63%

Valuation and Earnings

This table compares Rev Group and Workhorse Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rev Group $2.27 billion 0.32 $31.37 million $0.94 12.16
Workhorse Group $10.85 million 4.62 -$41.21 million ($1.09) -0.82

Rev Group has higher revenue and earnings than Workhorse Group. Workhorse Group 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 Recommendations

This is a breakdown of recent ratings for Rev Group and Workhorse Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rev Group 0 7 2 0 2.22
Workhorse Group 0 0 3 0 3.00

Rev Group presently has a consensus target price of $21.00, indicating a potential upside of 83.73%. Workhorse Group has a consensus target price of $4.67, indicating a potential upside of 424.34%. Given Workhorse Group’s stronger consensus rating and higher possible upside, analysts plainly believe Workhorse Group is more favorable than Rev Group.

Insider and Institutional Ownership

8.5% of Workhorse Group shares are owned by institutional investors. 4.0% of Rev Group shares are owned by company insiders. Comparatively, 2.8% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Rev Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Workhorse Group does not pay a dividend. Rev Group pays out 21.3% of its earnings in the form of a dividend.

Summary

Rev Group beats Workhorse Group on 9 of the 15 factors compared between the two stocks.

Rev Group Company Profile

REV Group, Inc. designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, 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 municipal fire departments, EMS providers, and private fleets through dealers. The Commercial segment provides transit and shuttle buses, school buses, mobility vans, and other specialty vehicles, including sweepers and terminal trucks. The segment sells its products directly, as well as through dealers to municipalities, schools, and commercial and industrial customers. The Recreation segment offers motorized recreational vehicles and luxury buses. This segment sells its vehicles through dealer to brand-loyal customers and fleet owners. 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.

Workhorse Group Company Profile

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring system that enables fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones and truck systems. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.

Receive News & Ratings for Rev Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rev Group and related companies with MarketBeat.com's FREE daily email newsletter.