Nikola (NASDAQ:NKLA) & REV Group (NYSE:REVG) Head-To-Head Review

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nikola N/A -47.45% -44.49%
REV Group 0.28% 9.96% 3.64%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Nikola and REV Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nikola 0 6 3 0 2.33
REV Group 1 3 1 0 2.00

Nikola currently has a consensus price target of $22.13, suggesting a potential upside of 37.08%. REV Group has a consensus price target of $17.40, suggesting a potential upside of 14.40%. Given Nikola’s stronger consensus rating and higher probable upside, analysts clearly believe Nikola is more favorable than REV Group.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nikola $90,000.00 70,630.43 -$384.31 million ($1.19) -13.56
REV Group $2.28 billion 0.43 -$30.50 million $0.06 253.50

REV Group has higher revenue and earnings than Nikola. Nikola is trading at a lower price-to-earnings ratio than REV Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Nikola has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, REV Group has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500.

Insider & Institutional Ownership

15.9% of Nikola shares are owned by institutional investors. Comparatively, 92.9% of REV Group shares are owned by institutional investors. 22.8% of Nikola shares are owned by company insiders. Comparatively, 3.8% of REV Group shares are owned by company insiders. 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.

Summary

REV Group beats Nikola on 9 of the 14 factors compared between the two stocks.

Nikola Company Profile

Nikola Corporation designs and manufactures battery electric and hydrogen-electric vehicless. It operates in two business units, Truck and Energy. The Truck business unit develops and commercializes battery electric vehicles, hydrogen fuel cell electric vehicles, vehicle components, and class 8 trucks that provide solutions to the short-haul, medium-haul, and long-haul trucking sector. The Energy business unit is focuses on developing and constructing a network of hydrogen fueling stations for its fuel-cell electric and other customers. Nikola Corporation was founded in 2015 and is headquartered in Phoenix, Arizona.

REV Group Company Profile

REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, 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, Smeal, and Ladder Tower brands; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, Wheeled Coach, and Frontline brands. The Commercial segment offers transit buses, type A school buses, sweepers, and terminal trucks under the Collins Bus, Capacity, ENC, and Lay-Mor brands. The Recreation segment offers motorized and towable RV models under the American Coach, Fleetwood RV, Holiday Rambler, Renegade, Midwest, and Lance brands; and produces a range of custom molded fiberglass products for the heavy-duty truck, RV, and broader industrial markets. 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. is based in Brookfield, Wisconsin.

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