Analyzing Adient (ADNT) and Rev Group (REVG)

Adient (NYSE: ADNT) and Rev Group (NYSE:REVG) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Profitability

This table compares Adient and Rev Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adient 5.47% 22.48% 7.35%
Rev Group 0.98% 10.51% 3.95%

Dividends

Adient pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Adient pays out 11.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Adient and Rev Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adient 1 3 3 0 2.29
Rev Group 0 3 8 0 2.73

Adient currently has a consensus price target of $76.43, indicating a potential downside of 1.81%. Rev Group has a consensus price target of $32.44, indicating a potential upside of 17.68%. Given Rev Group’s stronger consensus rating and higher probable upside, analysts clearly believe Rev Group is more favorable than Adient.

Valuation and Earnings

This table compares Adient and Rev Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adient $16.21 billion 0.45 $877.00 million $9.35 8.33
Rev Group $1.93 billion 0.92 $30.19 million N/A N/A

Adient has higher revenue and earnings than Rev Group.

Insider and Institutional Ownership

92.7% of Adient shares are held by institutional investors. Comparatively, 25.0% of Rev Group shares are held by institutional investors. 0.1% of Adient 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

Adient beats Rev Group on 7 of the 13 factors compared between the two stocks.

Adient Company Profile

Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.

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.

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