Toyota Motor Corp Ltd Ord (NYSE: TM) and Rev Group (NASDAQ:REVG) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Toyota Motor Corp Ltd Ord 6.74% 10.39% 3.92%
Rev Group 1.25% 6.72% 2.58%

Institutional and Insider Ownership

0.8% of Toyota Motor Corp Ltd Ord shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Toyota Motor Corp Ltd Ord $256.54 billion 0.67 $32.51 billion $11.40 10.09
Rev Group $2.06 billion 0.82 $94.96 million N/A N/A

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

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toyota Motor Corp Ltd Ord 1 2 1 0 2.00
Rev Group 0 3 7 0 2.70

Toyota Motor Corp Ltd Ord presently has a consensus target price of $112.11, suggesting a potential downside of 2.49%. Rev Group has a consensus target price of $32.38, suggesting a potential upside of 22.40%. Given Rev Group’s stronger consensus rating and higher possible upside, analysts plainly believe Rev Group is more favorable than Toyota Motor Corp Ltd Ord.

Summary

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

About Toyota Motor Corp Ltd Ord

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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