Rev Group (NASDAQ: REVG) and Toyota Motor Corp Ltd Ord (NYSE:TM) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitabiliy, valuation, institutional ownership, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

0.9% of Toyota Motor Corp Ltd Ord shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Rev Group and Toyota Motor Corp Ltd Ord’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rev Group $2.06 billion 0.84 $94.96 million N/A N/A
Toyota Motor Corp Ltd Ord $246.55 billion 0.69 $32.21 billion $11.40 10.02

Toyota Motor Corp Ltd Ord has higher revenue and earnings than Rev Group.

Analyst Recommendations

This is a summary of current recommendations and price targets for Rev Group and Toyota Motor Corp Ltd Ord, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rev Group 0 3 7 0 2.70
Toyota Motor Corp Ltd Ord 1 4 1 0 2.00

Rev Group currently has a consensus price target of $32.38, indicating a potential upside of 19.38%. Toyota Motor Corp Ltd Ord has a consensus price target of $112.11, indicating a potential downside of 1.85%. Given Rev Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rev Group is more favorable than Toyota Motor Corp Ltd Ord.

Profitability

This table compares Rev Group and Toyota Motor Corp Ltd Ord’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rev Group 1.25% 6.72% 2.58%
Toyota Motor Corp Ltd Ord 6.74% 10.40% 3.92%

Dividends

Toyota Motor Corp Ltd Ord pays an annual dividend of $3.54 per share and has a dividend yield of 3.1%. Rev Group does not pay a dividend. Toyota Motor Corp Ltd Ord pays out 31.1% of its earnings in the form of a dividend.

Summary

Toyota Motor Corp Ltd Ord beats Rev Group on 7 of the 13 factors compared between the two stocks.

Rev Group Company Profile

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.

Toyota Motor Corp Ltd Ord Company Profile

Toyota Motor Corporation (Toyota) conducts business in the automotive industry. The Company also conducts business in finance and other industries. The Company’s segments include Automotive, Financial Services and All Other. Toyota sells its vehicles in approximately 190 countries and regions. Toyota’s markets for its automobiles are Japan, North America, Europe and Asia. The Company’s Automotive segment includes the design, manufacture, assembly and sale of passenger vehicles, minivans and commercial vehicles, such as trucks and related parts and accessories. The Company’s Financial Services segment consists of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. The All Other segment includes the design, manufacturing and sale of housing, telecommunications and other businesses. Its information technology related businesses include a Web portal for automobile information called GAZOO.com.

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