Analyzing Firstgroup (OTCMKTS:FGROY) & REV Group (NYSE:REVG)

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

Risk & Volatility

REV Group has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Firstgroup has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Dividends

REV Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Firstgroup pays an annual dividend of $0.05 per share and has a dividend yield of 1.9%. REV Group pays out 12.6% of its earnings in the form of a dividend. REV Group has raised its dividend for 1 consecutive years.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REV Group	1	4	1	1	2.29
Firstgroup	0	0	0	0	0.00

REV Group currently has a consensus price target of $49.25, suggesting a potential downside of 15.71%. Given REV Group’s stronger consensus rating and higher probable upside, research analysts plainly believe REV Group is more favorable than Firstgroup.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REV Group	3.86%	31.67%	10.30%
Firstgroup	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REV Group	$2.46 billion	1.16	$95.20 million	$1.91	30.59
Firstgroup	$6.46 billion	0.23	$162.68 million	N/A	N/A

Firstgroup has higher revenue and earnings than REV Group.

Summary

REV Group beats Firstgroup on 10 of the 14 factors compared between the two stocks.

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.

About Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.