REV Group (NYSE:REVG) versus PowerFleet (NASDAQ:AIOT) Financial Survey

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

Volatility & Risk

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PowerFleet	$443.78 million	1.30	-$20.55 million	($0.16)	-26.81
REV Group	$2.46 billion	1.27	$95.20 million	$1.91	33.46

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.

Analyst Recommendations

This is a summary of recent recommendations for PowerFleet and REV Group, as provided by MarketBeat.com.

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

PowerFleet currently has a consensus target price of $9.67, suggesting a potential upside of 125.33%. REV Group has a consensus target price of $55.67, suggesting a potential downside of 12.88%. Given PowerFleet’s higher probable upside, equities research analysts clearly believe PowerFleet is more favorable than REV Group.

Institutional and Insider Ownership

73.4% of PowerFleet shares are held by institutional investors. 5.9% of PowerFleet shares are held by insiders. Comparatively, 1.7% of REV Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

REV Group beats PowerFleet on 9 of the 15 factors compared between the two stocks.

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.

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.