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

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

Volatility & Risk

XOS has a beta of 1.74, indicating that its stock price is 74% 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 XOS and REV Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOS	-51.68%	-80.31%	-32.05%
REV Group	3.86%	31.67%	10.30%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOS	$45.99 million	0.75	-$25.32 million	($1.62)	-1.50
REV Group	$2.46 billion	1.27	$95.20 million	$1.91	33.46

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.

Analyst Ratings

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

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

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

Insider & Institutional Ownership

12.9% of XOS shares are owned by institutional investors. 20.7% of XOS shares are owned by company insiders. Comparatively, 1.7% of REV Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

REV Group beats XOS on 12 of the 15 factors compared between the two stocks.

About XOS

Xos, Inc. is an electric mobility company engaged in manufacturing electric trucks. The firm designs and develops fully electric battery mobility systems specifically for commercial fleets. The company was founded by Dakota Semler and Giordano Sordoni on July 29, 2020 and is headquartered in Los Angeles, CA.

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.