Rev Group (NYSE: REVG) and Tata Motors (NYSE:TTM) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.9%. Tata Motors does not pay a dividend. Rev Group pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Rev Group and Tata Motors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Rev Group and Tata Motors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rev Group presently has a consensus price target of $32.78, indicating a potential upside of 3.43%. Tata Motors has a consensus price target of $30.00, indicating a potential downside of 12.59%. Given Rev Group’s stronger consensus rating and higher probable upside, analysts plainly believe Rev Group is more favorable than Tata Motors.
Insider & Institutional Ownership
25.0% of Rev Group shares are owned by institutional investors. Comparatively, 10.9% of Tata Motors shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Rev Group and Tata Motors’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rev Group||$2.27 billion||0.90||$31.37 million||$0.42||75.45|
|Tata Motors||$41.04 billion||0.57||$943.80 million||$2.02||16.99|
Tata Motors has higher revenue and earnings than Rev Group. Tata Motors 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 beats Tata Motors on 8 of the 14 factors compared between the two stocks.
About Rev Group
REV Group, Inc. is a designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. The Company operates through three segments: Fire & Emergency, Commercial and Recreation. The Company provides customized vehicle solutions for applications, including essential needs (ambulances, fire apparatus, school buses, mobility vans and municipal transit buses), industrial and commercial (terminal trucks, cut-away buses and street sweepers) and consumer leisure (recreational vehicles (RVs) and luxury buses). The Fire & Emergency segment manufactures a range of fire apparatus and ambulance products. The Commercial segment manufactures transit and shuttle buses, Type A school buses, mobility vans, and other specialty vehicles, including sweepers and terminal trucks distributed both through dealers and direct. The Recreation segment manufactures motorized RV products sold to brand-loyal, repeat customers who purchase through dealers.
About Tata Motors
Tata Motors Limited is an automobile company. The Company is engaged in manufacture of motor vehicles. The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company’s segments include automotive operations and all other operations. The Company’s automotive segment operations include all activities relating to the development, design, manufacture, assembly and sale of vehicles, including vehicle financing, as well as sale of related parts and accessories. In the automotive segment, the Company manufactures and sells passenger cars, utility vehicles, light commercial vehicles, and medium and heavy commercial vehicles. The Company’s all other operations segment mainly includes information technology (IT) services, and machine tools and factory automation services. The Company operates in over 160 countries across the world.
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.