Reviewing Honda Motor (HMC) and Rev Group (REVG)
Rev Group (NYSE: REVG) and Honda Motor (NYSE:HMC) are both mid-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.8%. Honda Motor pays an annual dividend of $0.37 per share and has a dividend yield of 1.1%. Rev Group pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Honda Motor pays out 11.7% of its earnings in the form of a dividend. Honda Motor has increased its dividend for 4 consecutive years.
This table compares Rev Group and Honda Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Rev Group and Honda Motor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rev Group currently has a consensus price target of $32.78, indicating a potential downside of 0.04%. Honda Motor has a consensus price target of $36.36, indicating a potential upside of 5.45%. Given Honda Motor’s higher probable upside, analysts plainly believe Honda Motor is more favorable than Rev Group.
Institutional & Insider Ownership
25.0% of Rev Group shares are owned by institutional investors. Comparatively, 2.4% of Honda Motor shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Rev Group and Honda Motor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rev Group||$2.27 billion||0.93||$31.37 million||$0.42||78.07|
|Honda Motor||$124.78 billion||0.50||$5.73 billion||$3.17||10.88|
Honda Motor has higher revenue and earnings than Rev Group. Honda 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 Honda Motor on 8 of the 15 factors compared between the two stocks.
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.
About Honda Motor
Honda Motor Co., Ltd. (Honda) develops, manufactures and markets motorcycles, automobiles and power products across the world. The Company’s segments include Motorcycle Business, Automobile business, Financial services business, and Power product and other businesses. The Company produces a range of motorcycles, with engine displacement ranging from the 50 cubic centimeters class to the 1,800 cubic centimeters class. Its automobiles use gasoline engines of three, four or six cylinder, diesel engines, gasoline-electric hybrid systems and gasoline-electric plug-in hybrid systems. Honda offers a range of financial services to its customers and dealers through finance subsidiaries in countries, including Japan, the United States, Canada, the United Kingdom, Germany, Brazil and Thailand. Honda manufactures a range of power products, including general-purpose engines, generators, water pumps, lawn mowers, riding mowers, grass cutters, brush cutters, tillers and snow blowers.
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