Critical Analysis: Honda Motor (HMC) & Rev Group (REVG)
Rev Group (NYSE: REVG) and Honda Motor (NYSE:HMC) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Valuation and Earnings
This table compares Rev Group and Honda Motor’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rev Group||$1.93 billion||0.96||$30.19 million||N/A||N/A|
|Honda Motor||$124.78 billion||0.49||$5.73 billion||$3.18||10.59|
Rev Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Honda Motor pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Honda Motor pays out 17.6% of its earnings in the form of a dividend. Rev Group has raised its dividend for 3 consecutive years. Rev Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
25.0% of Rev Group shares are held by institutional investors. Comparatively, 2.4% of Honda Motor shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
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 breakdown of current recommendations and price targets for Rev Group and Honda Motor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rev Group currently has a consensus price target of $32.44, suggesting a potential upside of 12.50%. Honda Motor has a consensus price target of $36.36, suggesting a potential upside of 7.96%. Given Rev Group’s stronger consensus rating and higher possible upside, analysts plainly believe Rev Group is more favorable than Honda Motor.
Rev Group beats Honda Motor on 10 of the 13 factors compared between the two stocks.
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.
Honda Motor Company Profile
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.
Receive News & Ratings for Rev Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rev Group and related companies with MarketBeat.com's FREE daily email newsletter.