Analyzing General Motors (GM) and REV Group (REVG)

General Motors (NYSE: GM) and REV Group (NYSE:REVG) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Earnings and Valuation

This table compares General Motors and REV Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Motors $166.38 billion 0.37 $9.43 billion $1.95 21.94
REV Group $1.93 billion 0.92 $30.19 million N/A N/A

General Motors has higher revenue and earnings than REV Group.

Profitability

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

Net Margins Return on Equity Return on Assets
General Motors 2.00% 20.95% 4.08%
REV Group 0.98% 10.51% 3.95%

Dividends

General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 3.6%. REV Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. General Motors pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. REV Group has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current recommendations for General Motors and REV Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Motors 3 12 7 1 2.26
REV Group 0 3 8 0 2.73

General Motors presently has a consensus price target of $43.38, indicating a potential upside of 1.38%. REV Group has a consensus price target of $32.44, indicating a potential upside of 17.51%. Given REV Group’s stronger consensus rating and higher possible upside, analysts plainly believe REV Group is more favorable than General Motors.

Institutional & Insider Ownership

73.0% of General Motors shares are held by institutional investors. Comparatively, 25.0% of REV Group shares are held by institutional investors. 0.0% of General Motors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

About General Motors

General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.

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.

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