Oshkosh (OSK) versus Rev Group (REVG) Financial Analysis

Oshkosh (NYSE:OSK) and Rev Group (NYSE:REVG) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.6%. Rev Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Oshkosh pays out 22.6% of its earnings in the form of a dividend. Rev Group pays out 21.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oshkosh has increased its dividend for 3 consecutive years. Oshkosh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Oshkosh 5.44% 19.19% 8.76%
Rev Group 2.40% 13.12% 5.65%

Analyst Ratings

This is a summary of current recommendations for Oshkosh and Rev Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh 0 7 8 0 2.53
Rev Group 0 7 2 0 2.22

Oshkosh currently has a consensus target price of $90.57, indicating a potential upside of 47.20%. Rev Group has a consensus target price of $21.38, indicating a potential upside of 60.71%. Given Rev Group’s higher possible upside, analysts plainly believe Rev Group is more favorable than Oshkosh.

Institutional & Insider Ownership

89.3% of Oshkosh shares are owned by institutional investors. 1.6% of Oshkosh shares are owned by insiders. Comparatively, 4.0% of Rev Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oshkosh $6.83 billion 0.66 $285.60 million $4.25 14.48
Rev Group $2.27 billion 0.37 $31.37 million $0.94 14.15

Oshkosh has higher revenue and earnings than Rev Group. Rev Group is trading at a lower price-to-earnings ratio than Oshkosh, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Oshkosh has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Rev Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Summary

Oshkosh beats Rev Group on 13 of the 17 factors compared between the two stocks.

Oshkosh Company Profile

Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation; and chassis and service parts sales. Its Defense segment provides severe-duty, and heavy-and medium-payload tactical trucks for the department of defense, such as hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units and light-payload tactical vehicles. The company's Fire & Emergency segment offers custom and commercial fire apparatus; and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides snow removal vehicles; broadcast and communication vehicles comprising electronic field production trailers, and satellite and electronic news gathering vehicles; and command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants and vehicle components, and refuse collection vehicles to concrete ready-mix and waste services industries. Oshkosh Corporation provides its products through direct sales representatives, dealers, and distributors. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is based in Oshkosh, Wisconsin.

Rev Group Company Profile

REV Group, Inc. designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment offers a range of fire apparatus and ambulance products for municipal fire departments, EMS providers, and private fleets through dealers. The Commercial segment provides transit and shuttle buses, school buses, mobility vans, and other specialty vehicles, including sweepers and terminal trucks. The segment sells its products directly, as well as through dealers to municipalities, schools, and commercial and industrial customers. The Recreation segment offers motorized recreational vehicles and luxury buses. This segment sells its vehicles through dealer to brand-loyal customers and fleet owners. The company also provides aftermarket parts and services. REV Group, Inc. was formerly known as Allied Specialty Vehicles, Inc. and changed its name to REV Group, Inc. in November 2015. The company is headquartered in Milwaukee, Wisconsin.

Receive News & Ratings for Oshkosh Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oshkosh and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply