Toyota Motor (TM) and Rev Group (REVG) Critical Analysis
Toyota Motor (NYSE: TM) and Rev Group (NYSE:REVG) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
0.8% of Toyota Motor shares are owned by institutional investors. Comparatively, 25.0% of Rev Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Toyota Motor pays an annual dividend of $3.56 per share and has a dividend yield of 2.9%. Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Toyota Motor pays out 30.6% of its earnings in the form of a dividend. Rev Group pays out 187.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Toyota Motor is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and price targets for Toyota Motor and Rev Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Toyota Motor currently has a consensus target price of $112.11, indicating a potential downside of 9.92%. Rev Group has a consensus target price of $32.44, indicating a potential upside of 21.20%. Given Rev Group’s stronger consensus rating and higher probable upside, analysts clearly believe Rev Group is more favorable than Toyota Motor.
This table compares Toyota Motor and Rev Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Toyota Motor and Rev Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Toyota Motor||$255.27 billion||0.73||$17.03 billion||$11.65||10.68|
|Rev Group||$1.93 billion||0.89||$30.19 million||$0.32||83.66|
Toyota Motor has higher revenue and earnings than Rev Group. Toyota Motor is trading at a lower price-to-earnings ratio than Rev Group, indicating that it is currently the more affordable of the two stocks.
Rev Group beats Toyota Motor on 7 of the 13 factors compared between the two stocks.
About Toyota Motor
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.
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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